Tax for company director taking on outside personal work

[the white rose]

Hi again everyone, long time no see! No I'm not a multi millionaire best selling author just yet but I'm now writing my third novel and my books are still selling so we're going in the right direction!

Anyway I've got a tax query for anyone who can help. I've been offered some lecturing work and am wondering how this should be taxed. So far I've just sent the University an invoice from me personally. I'm unlikely to cross the threshold for personal tax, we're talking about a few hundred pounds earnings. But should I be putting this through the company books and should it be taxed as part of my earnings as a company director? The work does pertain to my business but could equally be considered separate. And the personal income will not take the business income to above my earnings allowance as a company director either; this is still a very small fledgling company. Any advice, as usual, greatly appreciated

(Ooh my signature's gone! I must update my UKBF sub! In the meantime you can see who I am from the link to my home page in my user profile.)

 

[elaine@cheapaccounting]

Easiest is to invoice through company but without knowing all the facts it is diffcult to advise.

Why would you want to invoice separately?

Are you now paying a salary through the company?

Best person is advise is your accountant.

 

[the white rose]

Easiest is to invoice through company but without knowing all the facts it is diffcult to advise.

Why would you want to invoice separately?

Because it's not strictly company business, it's Uni lecturing.

Are you now paying a salary through the company?

I don't pay myself a salary through the company, no, not earning enough for that. I am taxed as a company director but am not exceedig my personal tax limit atm.

Best person is advise is your accountant.

I'm interested in hearing what people have to say about this subject I wondered if there was a default method for going about this

 

[Truemanbrown]

Hi again everyone, long time no see! No I'm not a multi millionaire best selling author just yet but I'm now writing my third novel and my books are still selling so we're going in the right direction!

Anyway I've got a tax query for anyone who can help. I've been offered some lecturing work and am wondering how this should be taxed. So far I've just sent the University an invoice from me personally. I'm unlikely to cross the threshold for personal tax, we're talking about a few hundred pounds earnings. But should I be putting this through the company books and should it be taxed as part of my earnings as a company director? The work does pertain to my business but could equally be considered separate. And the personal income will not take the business income to above my earnings allowance as a company director either; this is still a very small fledgling company. Any advice, as usual, greatly appreciated

(Ooh my signature's gone! I must update my UKBF sub! In the meantime you can see who I am from the link to my home page in my user profile.)

Can you give some idea of what your other earnings are?

 

[MyAccountantOnline]

From what you say I'd go for the keep it simple option and invoice via the company, but I wonder why you are trading as a limited company - is it really worthwhile for you?

 

[the white rose]

From what you say I'd go for the keep it simple option and invoice via the company, but I wonder why you are trading as a limited company - is it really worthwhile for you?

So as an author, if I get sued it's the company that gets sued and not me personally. I spent a long time weighing up the options between sole trader and limited company (not least by discussing it on here) and opted for limited company in the end.

So invoicing through the company keeps it simpler. OK thanks Nicola J

 

[MyAccountantOnline]

So as an author, if I get sued it's the company that gets sued and not me personally. I spent a long time weighing up the options between sole trader and limited company (not least by discussing it on here) and opted for limited company in the end.

So invoicing through the company keeps it simpler. OK thanks Nicola J

Their are certainly many pro's and cons of incorporation and some factors without doubt carry more weighting for some than others - limited liability can certainly be a huge benefit to some.

I havent ever acted for an author but am aware of authors averaging of profits which would have been a factor worth considering when making your decision.

 

[David Griffiths]

Have you clarified how the university is going to pay you?

In my experience they will put it through PAYE and take basic rate tax from the payments, so you might not have an option in any event.

 

[elaine@cheapaccounting]

even if the company cannot afford to pay you a salary there are advantages to paying it - no corporation tax to pay plus NI credits.

Read this for info ...

http://www.cheapaccounting.co.uk/blog/?p=683