Freelance IT consulting and tax - a question or two

Kenny · 2006-08-14T08:17:58+00:00

Hi all, I've got a quick question or two about IT consultancy and tax.... I'm currently working full-time, but have been asked by another company to provide some consultancy services (well, software maintenance) on a freelance basis. The freelance work is completely unrelated to my full-time job, so I'm responsible for the tax side of things. Can anyone tell me the tax rate I'll have to pay? Also, I know it's generally more tax-efficient to set up my own company to deal with this side of things, but I'm not sure how regular the work has to be to make it worthwhile. I *suspect* this will pay a few K a year (say, 5K) with 3 or 4 assignments a year. Any idea what I should do? Should I look at starting a company? And how much does it cost to set up and maintain a company for this sort of freelance work? Thanks! Kenny

Aug 14, 2006 122 Replies

Rate this thread:

Tim 20 years ago

"Peter Saxton" wrote

I didn't avoid the question - I actually answered it, to the best of my ability!

"Peter Saxton" wrote

A sign of someone who has just realised that they have been wrong all along!

I'll take that as your admission that you've just realised that your statement "...the start of the new millenium was 1 January 2001" was not necessarily correct.

Vote

Peter Saxton 20 years ago

"Preparing Company Accounts 2006/2007" by CCH p3: "All companies are required to prepare full statutory accounts for shareholders but those for small companies may contain less detailed information. Small and medium-sized companies may also prepare "abbreviated accounts" for filing."

Vote