Setting up a company and remaining in employment

Hi ,

I'm currently in permanent employment with a company and I am looking at setting myself up as a company on the basis of some freelance web development work which I have acquired from a company on the condition that I can invoice them.

As this is extra to my main employment , my main questions are:
1) Is there a tax issue being both in employment and setting up a company. I am on the lower tax band earning 29,500 excluding bonuses. The income from my freelance work would be approx 8,000 per annum
2) I think I have learned from other threads enough about the CRO but can someone give me a dummies guide to the revenue. I must have a vat number to invoice the company I am doing freelance for. Also as I am not providing a product , but a service , is there anything else i should know regarding this,

Thanks

For 8k additional income, it may not be wise to set up a company. There are usually more compliance costs associated with companies. You should check with an accountant

Compliance is a killer, its not worth setting up a LTD company for 8K a year. You cant register for VAT on that income either. Contact the company and make sure they actually need VAT Invoices. When it comes to services VAT is just an extra charge on top anyway so the net effect is the same. They most likely just need invoices to show that the money was spent on a legitimate expence and not just...well, spent!

Froggie said:

You cant register for VAT on that income either

Click to expand...

You can register for vat

hows that h?

Presumably because even though you are under the limit which require registration, you can still elect to be registered

Yeah I think you can elect to register for VAT if you want even though you're not above the threshold

The above posters are correct - he can elect to register if he wishes.

But can he check with this company to see of they absolutely require a VAT-invoice or just an invoice. Methinks he may be okay without actually VAT-registering.