Contractor or Company - Tier 1 Extension Query

[risingmoon19]

Hello Guys,

My Tier 1 General is due for extension in Jan 2013. I have a question: I am currently working full time as a employee and also I want to do some self employment work starting from next month. The total contract value of the self employment work is £5000. I want to show that amount earned in my extension application.

However, I am bit confused whether to register a new company or work as a contractor. I have read a policy guidance and it says if you do not operate through either your own company and you are not an employee then you can apply as a contractor. Considering the amount that I will be earning is £5000 and I have neither registered a company nor as a self employed yet (my extension is due in Jan) which option will be easier and more convenient? That is to say, in which option I would need less documents and case would be more straight forward.

Also, as I stated that I have not registered a new company or as self employed, can I start working while HMRC or company house process my relevant application and if I receive an amount in my bank account for that work during the period I am not registered, would that be acceptable?

Could someone please point me in a right direction or give me the link where similar case was discussed on the forum, that would be much appreciated!