Changing from Paye to Self Employed

I have worked as a freelancer for 40 years and have always been employed on a paye basis by the companies that have employed me. Now I am receiving state pension and noticed that my tax code changed making the amount of deductions much higher. I have now been offered another 20 week contract and wonder if it would be preferable to become self employed and invoice the company weekly rather than continue on paye. I understand that my grade would allow this. I already file a self assessment form each year for rental on a property and have a utr number. This would most likely be my last employment so would not want to become a company.

Hi,

Being self employed (sole trader) is not the same a registering as a limited company.  

Self employment is declared through your tax return, along with your employment income, property income and the profits from self employment are subject to Income Tax and National Insurance through Self Assessment.  

Limited companies are registered through Companies House and they pay Corporation Tax on their profits.

You may need to seek professional financial advice on whether to be employed or self employed with this company. We cannot provide that advice.

Thank you.

If I already have a UTR number as I file a self assessment return each year can I add being self employed as a sole trader to that number online before I start working with the company? They say they would require proof of self employment.

Hi,

If you already have a UTR and start self employment then you woukdl need to register as self employed but it will be the same UTR.

Set up as self-employed (a 'sole trader'): step by step

Thank you.