I have done some work for my previous employer after hours to assist until the new person is employed. We agreed upon a hourly rate. I must now be paid for these hours. What will be better for me: 1. To invoice the previous employer for the hours Or 2. Let them pay me through their payroll as their employee?
What will the income tax implications be with both these options?
Either way you will add this income to the other income earned and pay tax, but letting the company pay you and deducting PAYE may be better else you will have to pay a larger sum when you file your tax return. If they deduct PAYE then at least you have prepaid some of the tax already.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.