Invoicing your employer

A2Z · 18 Mar 2012 at 20:43

Ok I have just started a new 'casual, as and when needed basis' job basically doing IT support at events.

It can vary from 0-3 times a week, so I guess I am a contractor as such, and get paid per day, when they need me. I have not, and as it has not been mentioned, be signing any contract or anything.

I did my first event last week, and the employer has asked me to invoice them for the day.

I have never done this before so I am asking for OcUK to help me

I have previously dealt with a lot of invoice raising for clients in another role, but that was all automatic etc. What exactly do I need to put on the invoice? And how do I deal with the tax side of things?

The rate is £150 per day, but as it is not guaranteed I am looking for another proper job to work around it, so it will not be my only income, although for the other Im assuming would just be standard PAYE.

I have had a google and found some basic information, but would appreciate some help from anyone that does this on a regular basis.

Thanks

Pho · 18 Mar 2012 at 20:47

You're going to need to register your self as self employed / set-up a limited company to avoid tax man problems.

Jokester · 18 Mar 2012 at 20:54

Pho said:
You're going to need to register your self as self employed / set-up a limited company to avoid tax man problems.

This.

Given the sums involved you're probably better off going self employed as ltd company contractor only starts making financial sense once you're earnings are about £50k or so a year I believe.

In terms of invoices, google for "invoice templates", there's plenty out there.

Edit: Not sure on bank arrangements for self employed, whether you can get the company to pay direct into your personal account or not.

Edit: Oh and you don't invoice your employer, you invoice your client

mollymoo · 18 Mar 2012 at 21:39

Jokester said:
This.

Given the sums involved you're probably better off going self employed as ltd company contractor only starts making financial sense once you're earnings are about £50k or so a year I believe.

In terms of invoices, google for "invoice templates", there's plenty out there.

Edit: Not sure on bank arrangements for self employed, whether you can get the company to pay direct into your personal account or not.

Edit: Oh and you don't invoice your employer, you invoice your client

As far as I remeber it's just better when self employed to have a seperate business account, rather than a necessity. When you take money from the business account it can then be shown a lot more clearly as drawing, you can even reference it as such. It will also make your self assessmnet a lot simpler and clearer. Dealing with a joint business personal account is a bit of a nightmare sometimes.

Slade2 · 18 Mar 2012 at 21:56

Yeah setup another acccount and use that to get paid into. If this is not going to happen a lot of think you will be ok for tax reasons since I think you will be allowed to earn up to you tax level in that tax year. So if you are only doing this say once every couple of weeks in the end then you should be alright. Its a bit wierd that this was ever advertised as a job though I would say they could have just got any sort of contractor in to do it. I have to also state that if they are asking you to invoice them for the work then you are not employed by them and hence they have no responsibilty towards you. I will also add that you should make sure you have some kind of public liabiltiy insurance if you are going to work for yourself becuase it might only be IT support but if someone was to trip over a lead for example then you might be looking at a lawsuit although saying that isnt ment to scare you.