Software Development - Permanent + Contract at the same time?

Draupnir

Guys,

I work full time as a Software Developer for a Dublin based company and am quite happy with that arrangement at the moment as it adds a bit of job security and I am earning a good salary.

However, I have some options to do additional contract work and would like to take them up. I am wondering if it is possible to operate both lines of work at the same time?

If so, can I set myself up with a company in much the same way as a regular contractor would?

Thanks.

mrpink6789

Hey,

Yes I know alot of people who do this. As long as you declare your taxes then you are doing nothing wrong! You can set up a limited company like everyday contractors do.

I'm not sure how the tax issues work though so definitely have a chat with an Accountant about it.

Best of luck,

leeroybrown

There are plenty of people out there doing this. The only issue you could have is if your employer has a problem with this. For example, I'm required to inform my employer of outside interests and they could chose to prevent me from doing the work.

yop

Something to do with Intelluctual property or something I think. They can have a claim for example of the software you do outside work as you developed the skills working for them.
You need to get it in writing that they wont come after you on this.

qwytre

I have done this myself previously. No need to set up as a limited company, it would only cost you time and money (e.g. montly VAT returns).

Just do the work and submit your invoices and get paid.

You need to register as "Self Employed" with the Revenue. If your expected income from this extra contracting work is less than 50k (not sure on the extact theshold) then you dont need to register for VAT - which means you don't charge VAT to your customers. This doesnt affect your PAYE status, you can be both a PAYE and a Self Employed person. You pay tax on the money you earn on 2009 by October 2010. You must submt a FORM 11 I think it is.

Keep all receipts related to your work as you can claim expenses. Any accountant can help you on the details and they know how much expenses you can claim e.g. a percentage of your phone calls.

Never do any work or take calls etc on your current employers time, that way you won't ever get caught and your integrity is intact. Never use any code etc you wrote for your employer, do everything from scratch.

Do not use your work laptop etc, buy your own (can claim expenses against your income). Everything needs to be seperate so that there is no problems for you down the line if your employer finds out.

Only other thing to consider is if the contract work you are doing relates to the work you do for the employer - might be an Intellectual Property issue.

RangeR

qwytre wrote: »

I have done this myself previously. No need to set up as a limited company, it would only cost you time and money (e.g. montly VAT returns).

Don't need to file for VAT if you are earning under a certain threshold. You do have to have at least 2 directors, though and a lot of red tape.

Benefits of going LTD rather than Sole Trader / Self Employed is that the latter is unlimited liability should something go wrong or your company get sued for whatever reasons. Unlimited Liability means that ANYTHING you own is up for grabs in this situation. A limited company can only lose what's in that company's name [ie : Not your house, car etc.]

You need to register as "Self Employed" with the Revenue. If your expected income from this extra contracting work is less than 50k (not sure on the extact theshold) then you dont need to register for VAT - which means you don't charge VAT to your customers. This doesnt affect your PAYE status, you can be both a PAYE and a Self Employed person. You pay tax on the money you earn on 2009 by October 2010. You must submt a FORM 11 I think it is.

Hmmm, bit of a contradiction here or at the least, misleading. You give a reason NOT to go Limited because of VAT returns but say that he HAS TO go Self Employed but only pays VAT if he reaches a threshold. To be honest, this is the case for both types of company.

While there are definite differences between Self Employed and Limited, the main differences is limited liability or unlimited and you need at least one other person you trust to step in as a second director. That second director will need to purchase shares / invest in your company but this may just be €1 for one share, giving you majority ownership.

Research this a good bit before making up your mind but threat all replies here, including mine, as non authorative [spelling?].

Good luck in what you decide.