Co director has other employment

M

Mercury

Guest
I am a director of a small company (management consultancy) with my husband and earn a small salary as the company bookkeeper on PAYE basis. I have got a 4 mth contract with another employer worth about 8k. What is most tax efficient way of getting this income?

Straightforward PAYE or

Invoice the other employer from our company (we have done consultancy work for them in the past) for book keeping services

Gross pay from the other company on the understanding that I look after my own tax liability

Is there any advantage in being a PAYE employee with the other company, do I get advantage of extra PAYE allowance which I do not have as a company director?

Any advice appreciated
 
Cleanest and easiest way would be to invoice the other company+VAT and pay relevant taxes thru your own company. Otherwise you will probably be caught for higher rate of tax now, which can be sorted out by accountant later but is more hassle
 
If you have only a small income from your own company I would apply to be an employee of the other company. As you say, you'd have the Employee Tax credit which would cover your employment income from there.
 
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