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Is anyone here moonlighting with contract work?


TiN

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Ello all,

 

Just after a bit of advice in general, and maybe some specific stuff to do with taxes etc, if you would be so kind. :blush:

 

Basically, I'm in full-time employment, but I've just started to take on a bit of out-of-hours web development work for a startup, where I will be paid on a job-by-job basis. This is potentially seen as a bit of a long-term relationship, where the company can't really afford to employ anyone full-time at this time, but has work to be done, which suits me fine.

 

The guy just came out to meet me for a coffee, so it all seems pretty genuine and good...just waiting for the first set of instructions to be sent to me, and then it begins!

 

Is anyone in a similar position? Any personal thoughts on it?

 

And in terms of tax - does it mean that I'll need to be classified as self-employed? (and if so...what do I do!?)...and perhaps more importantly, do I need to inform my full-time employer - because even though it's not breaking any rules in my contract, the director didn't seem too keen on my contract work when I was interviewed for this job...

 

Cheers,

 

Tin

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If the director wasn't keen he should of requested it to be put in the contract.

 

Doing exactly the same myself at the moment. Hate it. Got a full time time as the web programming game wrecked my head dealing with idiots. Now I've agreed to do two sites for friends of mates and now they're wrecking my head. They want X. I program X. They don't really like X. They want Y. Y is completely different in every way to X. All this effort and I wont even get my full rate.

 

 

Guy

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Read your post on 350z-uk and was interested b'cos our website (www.first4care.co.uk) needs some major re-working this year and we're looking for someone on a casual basis to help us out.

 

I'm reasonably handy with design (photoshop) and whilst I can modify web pages (using macromedia contribute) I am clueless in actually developing a site.

 

I wondered what your rates were and how you worked your moonlighting?

 

As for contract work and being paid....

Save 22% of all your moonlighting money b'cos that's what you'll be taxed if you earn less that £39500. Anything more than this will be taxed at 40%. Basically, as a web developer you'll have very little costs and so all (apart from 'costs' such as software, hardware, training courses, travel expenses) of your moonlighting income will be profit - which good old Gordon wants his share of!

 

You do need to register with the Revenue as self employed for your moonlighting work and you will be required to complete a self-assessment form annually in which you will detail ALL your income (employed work, pensions, car allowance, shares, rental income etc) and your self employed costs.

 

I have no doubt you'll get away with it for a while - who'll know? BUT there is likely to be a day when the Revenue find out and when they do you'll owe back taxes and it'll break you - hence the need to put 22% into a savings account from Day 1.

 

Any more advice, please contact Andy Cripps (01623 657111) at www.apc-accountants.co.uk. He's my accountant and he is AWESOME. I have a VERY tax efficient - and legal - income ;)

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Get a GOOD accountant. Earn some extra skills. Sorted.

 

My dad encourages this (he is a director of a company) as it can develop skills that he doesn't have to pay training for! You also get a lot of extra experience and practice and again, he doesn't have to pay for it! The company is a winner! If the director doesn't like it then put these points across!

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Thanks for the replies guys, some good pointers there. ;)

 

GC350z - I know what you mean mate, but I think that's always the danger of mixing business with pleasure, so to speak...and why I'm reluctant to take on major requests from friends and family. But hang in there dude, and stand your ground dammit! ...draft out a spec, and use it as the foundation of the "contract"...I know it's easier said that done, but the nightmare will just continue otherwise.

 

And as for getting a good accountant - if I could afford that, I wouldn't need to moonlight! (or just moon, for Zedrush's sake. :p)

 

Cheers,

 

Tin

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