My advice would be to do as I have - start freelancing in the evenings to see how you get on. That way there is no risk. If things start to take off you can then as work to go part-time on go freelance 100%.
That's what I did in November and have basically been working evenings and weekends since then! Depending on how things go, I might consider the above.
I don't expect to earn huge amounts so dont want my earnings to be wiped out by NI. I read somewhere that I can apply for reduced NI if I earn less that 4700 - do you know much about this?
2) what percentage do I pay or is it based on my tax band for that year?
3) NI contributions are required every month? Thats pretty crap as I might only earn about 1k a year and losing 360 of it on NI almost makes it not worthwhile...
Thanks for your help
I will probably have more questions tomorrow when I've had a chance to think about it
Hello, I have been reading through the forum and trying to get some ideas on doing some freelance work.
I currently work full time as a designer and would like to be able to take on small projects a 4/5 times a year so approx 2-3k per annum so not a lot of money and not really a lot of work, but I'd like to do it officially etc. I currently earn close to the higher rate tax rate in my full time job and so, I have a few questions.
1) I was thinking of registering as a sole trader - do I simply register and then report back each year what I earned and then pay tax on this?
2) What sort of tax do I have to pay?
3) What do I have to pay if I am not working?
4) If I decide to stop doing the freelance work, can I simply unregister??
5) What happens if my freelance earnings push me over into the higher tax rate band, will i be worse off?
6) How does the above affect my insurances etc (motor policy asks if I am part-time employed, house policy says no business use etc)
That's it for now - thanks to you all if you offer some help.
