Setting up a company in the UK

Worth it for a part-timer?

[rich_b]

I have a full-time job and I do my web work in my spare time. I do a couple of small projects a year usually in the order of a few hundred pounds, maybe up to a thousand. Now I've got a more substantial project which I'll be doing with an IT contractor friend who already has his own company. Is it going to be worth setting up a company (and what would be the benefits?) or should I just stick to declaring my extra income when I do my annual personal tax return? Any advice appreciated!

[Syzygy]

Is this going to replace your full-time job, or is it extra work above and beyond your current employment?

If the former, then the best thing to do is go freelance/self employed. As far as I'm aware you don't really need to even think about setting up a 'company' or T/A (Trading As) unless your income is VAT-able.

In the latter case, declaring the additional income would be best in theory. However, the most obvious advice is actually the best - go see an accountant before you go further.

Usual disclaimer applies - I am not an accountant nor business adviser. Please seek proper advice before proceeding - it will save you an awful lot of trouble when you have to do your tax returns..;-)

Syzygy