Can I be employed as a permanent employee but be payed as a contractor (UK)?

Question

A few years ago, I set up a limited company...

1. Because I wanted to become a contractor.
2. Because I want to work for myself with a steady source of income (long term).

At the time of setting up the company, I was working in a permanent, full-time post, because I wanted a steady source of income whilst I was building up my own company. For the first 3 years my limited company lay dormant, and I filed "dormant" accounts.

Over the last 18 months, I've started receiving private work through my limited company, and have therefore had to pay an accountant to sort out my accounts and taxes.

In the last month, I've started work for a new startup company as a permanent employee. They do not have PAYE set up yet, and it's got nothing to do with my limited company (essentially, I work for two companies).

What I want to know is, can my permanent (full-time) position pay my limited company inclusive of taxes, and then my accountant can sort out my taxes for all the work I do, regardless of whether it came from my full-time position, or private work?

In short: Can I be payed like a contractor for a full-time position?

Answer 1

They do not have PAYE set up yet

A big red flag. How long has their shop been open ? Registering for PAYE is more or less a day's work and sometimes automatically done once someone registers as an employer, so I am not sure why they haven't done it yet. Are you sure your NI contributions are being paid ? Check the rules here. There might be something fishy with the start up.

Because I want to work for myself with a steady source of income (long term).

Don't count on it if you are a contractor. Sometimes projects mayn't come through, so be prepared for some downtime.

can my permanent (full-time) position pay my limited company inclusive of taxes

This you will need to sort out with your employer i.e. what type of contract you want. And remember getting paid from both places might increase your tax burden.