Running a Limited Company for short-term intermittent contracts
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    Default Running a Limited Company for short-term intermittent contracts

    Having retired from full-time work I am hoping to continue working part-time but no more than 6 months in any calendar year. And this 6 months might be made up of a number of shorter periods throughout the calendar year.
    I would prefer to set up a Limited Company rather than go through an umbrella company but I have no idea how I would approach PAYE if, for example, I did 2 months work, then nothing for another 3 months, then 3 months work, then another gap, etc.
    Has anyone got any experience of this sort of intermittent working pattern and can advise please ?
    By the way, since I am over 65, I will NOT be paying any NI and I wasn't planning on setting up any workplace pension stuff either. And I cannot see any issue with IR35 either.

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    You can do nil PAYE returns in those times when you don't work.
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    Just do PAYE once at the end of the year. Easier with RTI as well.

    Why do you think IR35 won't be a problem bearing in mind it's on a contract by contract basis?
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    Quote Originally Posted by oldlag View Post
    Having retired from full-time work I am hoping to continue working part-time but no more than 6 months in any calendar year. And this 6 months might be made up of a number of shorter periods throughout the calendar year.
    I would prefer to set up a Limited Company rather than go through an umbrella company but I have no idea how I would approach PAYE if, for example, I did 2 months work, then nothing for another 3 months, then 3 months work, then another gap, etc.
    Has anyone got any experience of this sort of intermittent working pattern and can advise please ?
    By the way, since I am over 65, I will NOT be paying any NI and I wasn't planning on setting up any workplace pension stuff either. And I cannot see any issue with IR35 either.
    Firstly, this implies that your Ltd would only pay a salary while you are fee earning. That's not unreasonable but it's entirely up to you. You could for example average it monthly, quarterly, or as an annual lump sum.

    Secondly, I'm not sure there's an advantage to PAYE in this instance. Doing away with salary and paying dividends only would be less hassle. Others will be able to advise better on this.

    Presumably you have already considered and discounted being self-employed as an option.

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    Quote Originally Posted by northernladuk View Post
    Just do PAYE once at the end of the year. Easier with RTI as well.
    That's what I do and fill in with dividends ad-hoc during the year.

    Why do you think IR35 won't be a problem bearing in mind it's on a contract by contract basis?
    Presumably as there's no NI liability.

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    Quote Originally Posted by northernladuk View Post
    ...Why do you think IR35 won't be a problem bearing in mind it's on a contract by contract basis?
    Possibly this: since I am over 65, I will NOT be paying any NI . The question is whether any ernic would be due - and apparently it is, therefore IR35 could be a problem.
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    Quote Originally Posted by Contreras View Post
    Secondly, I'm not sure there's an advantage to PAYE in this instance. Doing away with salary and paying dividends only would be less hassle. Others will be able to advise better on this.
    WHS. Most of us are doing PAYE because paying some salary is the most tax efficient way, and to get the NI "stamp". Much easier to simply pay dividends and enter it on your Self Assessment return once a year. If you can avoid registering for VAT as well then you're company will be about as simple to run as it's possible to be.
    Will work inside IR35. Or for food.

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    Quote Originally Posted by oldlag View Post
    Having retired from full-time work I am hoping to continue working part-time but no more than 6 months in any calendar year. And this 6 months might be made up of a number of shorter periods throughout the calendar year.
    I would prefer to set up a Limited Company rather than go through an umbrella company but I have no idea how I would approach PAYE if, for example, I did 2 months work, then nothing for another 3 months, then 3 months work, then another gap, etc.
    Has anyone got any experience of this sort of intermittent working pattern and can advise please ?
    By the way, since I am over 65, I will NOT be paying any NI and I wasn't planning on setting up any workplace pension stuff either. And I cannot see any issue with IR35 either.
    Not being rude, but how much are you expecting to earn?

    Could a zero salary and dividends not be a better approach dependent if you are using your personal allowance drawing a pension?
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    Default Many thanks for all replies

    Dear all,
    Many thanks for all your helpful responses.
    I am much clearer now on the situation where I am a PAYE employee of my Ltd Co. and no work is coming in, and while I think I should be OK as far as IR35 is concerned, I see now that it is more important than I realised.
    But since I intend to pay the bulk of any income to myself as salary - after legitimate expenses deductions - I don't think I have much to worry about.
    That's what HMRC told me when I rang their IR35 helpline, but if anyone thinks otherwise or has any words of experience for me, then please let me know.
    So right now, I think I am OK to set up my company with me as an employee and see what comes my way.
    Right now I cannot see me working enough to earn anything like the £82K VAT threshold so that's another issue I don't have to worry about.

    Thanks again
    Last edited by oldlag; 12th January 2016 at 16:28. Reason: REmove gibberish at botttom of post !

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    Quote Originally Posted by oldlag View Post
    Dear all,
    Many thanks for all your helpful responses.
    I am much clearer now on the situation where I am a PAYE employee of my Ltd Co. and no work is coming in, and while I think I should be OK as far as IR35 is concerned, I see now that it is more important than I realised.
    But since I intend to pay the bulk of any income to myself as salary - after legitimate expenses deductions - I don't think I have much to worry about.
    That's what HMRC told me when I rang their IR35 helpline, but if anyone thinks otherwise or has any words of experience for me, then please let me know.
    So right now, I think I am OK to set up my company with me as an employee and see what comes my way.
    Right now I cannot see me working enough to earn anything like the £82K VAT threshold so that's another issue I don't have to worry about.

    Thanks again
    Even if you're paying only salary, IR35 will still be important after April 2016, as you will not be allowed to claim travel and subsistence expenses if you're operating inside IR35 - so you will need to make an IR35 decision even if paying all your profit at PAYE.

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