Excuse newbie question

[northernladuk]

Personally I'd steer clear of ex colleagues wanting a bit of work done here and there. Every time I've ever seen someone bring another contractor on to help them they are either screwing the contractor royally or it doesn't turn out well.

If you want to go contracting I'd say just jump in with both feet. This might look like an OK number but there are better ones out there. Don't get blinkered by this offer. Look at what's around for your skill set and go for them instead of messy subcontracting gigs.

EDIT : Another factor is that you are only as good as your last gig in contracting. Agents will just look at the last piece of work and if it's not a perfect fit for the role they will move on. Taking on a bitty piece of work will either not look good on the CV or will require some flowering up. Might actually be a back step on your CV in the longer run.

[RedWimp]

Ok, because I've already crystallised my pension I'm limited to pension contributions in any case.

[ladymuck]

For a one-off, that you might not bother with long term, your best bet is either company payroll or an umbrella.

Depending on what you need to live on, a good umbrella will allow you to put much of your earnings into your pension and so reduce your tax burden so you may want to have a chat with your IFA to see if that helps or hinders the plans you've already worked on.

For simplicity, without the extra admin costs, I would go for the company payroll if extra contributions to your pension are going to mess up your IFA's plans.

If you decide that contracting is the life for you, then considering a LtdCo in few months' time might be worthwhile but it does depend on what work you do and whether the roles you'd be interested in are inside or outside IR35. There is no point setting up a company if your work is going to be predominantly inside.

[RedWimp]

Hope you excuse maybe naive question(s).
Let me give you the background.
Worked in large company for 35+ years PAYE but was lucky enough to be able to leave early with a pay-off in last tax year. I've had contractors work for me but never contracted so I guess never took so much notice of that side, although was aware of IR35 from an employer perspective and saw how it effected some of our contractors.
With the help of IFA have organised pensions, investments so I'm going to be drawing down from pension up to my PA & using money from investments, savings etc so in theory I'm not going to have to pay any tax. This is only just getting going so in actual fact will probably be under PA this year.
An ex-colleague has approached me to ask if I want to do some work for him. This is not the same company I worked for to be clear. He has some specific tasks he wants help on that he doesn't have resource to do, and when they're complete that should be it. I can do it remotely and at my own pace as it were.
I'm not doing it for the money per se (but of course current climate not going to lie is handy)but something to keep me occupied more so however who knows as my investments and pensions fall where this may lead.
So I'm looking for some wisdom / advice as to the different options.
He has said I can go onto the company payroll as a zero hours contract. This sounds easiest for me, but perhaps less tax efficient and not setting me up for future if I want to work / contract elsewhere.
Presumably I can use what I see referred to on here as an Umbrella Company. I'm understanding that to be registering with some kind of employment agency and they handle tax & NI etc. Again presumably relatively easy for me. However I'm thinking if this was the only piece of work I was to do might as well go on the payroll as do this, and only works to my advantage if I choose to go contracting elsewhere.
Then finally I presume I can set up myself as a company. Would sound like the best way I can minimise tax exposure. If I decide I want to pursue this more then I could also quote his contract as well as my work experience to tout for more work. But it's also the most scarey option, with having to create invoices and whatever else is required (here I imagine could be different depending on size, so if anyone can help with the best links on this site would be appreciated). And of course I couldn't assume future contracting would be outside IR35.
I think I've though of everything but if there's other things I should be considering please add. And I know there might be two answers depending whether I just do this one job or continue, my feeling as I will do more as I've got 8 years before remaining pensions kick in and think I have something to offer without overdoing it.