What I would like to ask:
1. Whether to register or not to register as a sole trader?
You need to register regardless; whether you get full payment or not. It is the intention of doing the work for payment which requires you to register, within 3 months.
- if I understand well, if I register as a sole trader, I have to start by filling out forms that my income is not going to be more than 7500 pounds, an also for the Class 2 NI that my income is not going to be more than 5500 pounds.
You can do this as part of the above registration, it is a declaration that would you earn will be beneath the LEL so as not to pay NI.
- also, if I register now, I will be fined 100 pounds+ for not registering within 3 months of my first payment. I couldn't register earlier as I have just received my NI number last week (I am an EU national).
I dont think they will accept that as an excuse; usually they provide a temporary NI number, until you recieve your proper one and they would accept that for registration.
2. My other alternative is not to be a sole trader, but just to tell HMRC on my tax forms that I had other income. Before I visited this forum I didn't think about it as a possibility.
This maybe true for Tax purposes, but I'm not fully conversed on that side of things.
- Do you think it's the best way in my case? I won't be doing any freelancing work as a business before I graduate, I am talking about 1 or 2 jobs per year in a total of max. 5000 pounds. Do you think I am safe in the non-registered category until I start working "seriously" after I graduate?
Againn, doesn't matter if you worked for £10 or £1000, you must register for tax/NI purposes. Being a student or only doing one job is not an excuse.
late reply but... for what it would cost to sue you, and for what she would get over a calendar for a charity; I wonder would anyone even bother representing her in the first place?
I wouldn't take it to heart when people whimsically threaten with legal action like that over daft things, but I would get things in writing always, as words mean nothing in court. 😉
If you are just working for yourself self-emplyoed (i.e not a Limited or Umbrella company) then I can't see a reason for them to contact your current employer.
When you are employed you pay Class 1 NI Contributions, when you are a sole trader you pay Class 2 (sometimes also Class 4) Contributions, so this shouldn't have anything to do with your employer.
Also the tax you would sort yourself via Self Assessment.
To be honest Mark, these people who have these little print shops and who make t-shirts, aren't large companies, nor do they last very long.
I think they just 'chance it' in using copyrighted work, with the hopes no-one would snitch on them.
Personally, its upto you whether its worth taking the risk or not, financially; are you going to gain in money, what you'd potentially have to pay out if sued?
If you know the exact figures I can't see it being a problem declaring your expenses, but not sure what you would do if someone needs to see the originals?
Is there no way you can get some sort of proof of purchase from the travel co?
I think the majority of people either do it straight from University or from gaining experience in the industry first.
Generally 3 months salary is the recommended amount to save up and put away for rainy days/months (to pay your bills when things are quiet), but essentially as long as you inform HMRC within 3 months of becoming ready to take on work, the rest really is just researching, planning and preparing to get going.
There are tons of articles out there on the interwebs, so get yourself on Google! 😃
With regards to HMRC, as long as you are ready for work you have to register, regardless if you get any work in / sell anything - you still have to declare that you are able to work, for tax and NI purposes.
oh yea I can understand charging the client the cost, because he would be making losses left right and centre.
I just thought he meant he was declaring to the Rev all the VAT he pays... as expenses :confused2
Well that surely can't be right, its like me charging an extra 40% percent or whatever, because I want to cover the 'expense' of paying tax and NI at the end of the year!!
You cant surely class it as an expense; its Value Added Tax.
I dont think it would go down with the Revenue too well...
mikeo, post: 5001 a écrit : i have just started working for a design company, full time from home earning around £250 per week.
Unless you are an employee of this company, then you are already a sole trader/freelancer/contractor and need to register as self-employed with HM Revenue and Customs within 3 months of first trading. 🙂
You have to register as self-employed within 3 months of being available for work (not 3 months after getting paid or whatever).
Unless you can declare your self-employed earnings will be beneath the current threshold then you WILL have to pay Class 2 National Insurance, regardless of your fulltime job.
Besides tax, you may also be liable to pay Class 4 National Insurance on your Self Assessment, taken by the taxman, depending on your earnings.
I suggest you register asap, and get it out the way.
yes? as they would need to know when and how ot make payment and what for.
Best to agree between you and the client what is best, possibly weekly or monthly?
That's true, you can attend workshops ran by staff from HMRC or Business Link also provides insightful meetings also.
Plus you get free tea and biccies! 😃
This has been answered several times in the forum, I would recommend searching for what you need under terms such as 'advertising' or 'self employed' etc
Register asap.
I work for HM Revenue and Customs, and although I am not a grass, I have worked for the Self-Employed Dept and also Tax Evasion (among other areas).
Best thing to do is just come clean and register, yes you will get fined, but any tax/NI owed would be dependant on your Gross Income, Net Income and Expenses (this is called a 3 line account).
Its better than them catching you.. as they dont see ignorance as an excuse.
I hope that helps, and good luck!
You have 3 months to register from the day you are ready for work - i.e. open up shop, start advertising, etc. Not necessarily from your first pay check.
Technically you dont start paying tax until around 18 months into you starting as self-employed; dont worry too much as they send you all the necessary guidance.
The best thing to do is just keep everything - receipts, invoices, emails, coopys of contracts, payments etc. The more information you have the easier it is when completing your Tax Return, and generally easier to run your business.
how i can be a freelancer and what i m suppose to do : Register with HM Revenue and Customs as self-employed
do i create a umbrella company? That is up to you and your circumstances
do i registred for a self-employed? Yes
do i need an accountant? Not necessarily, depends how much money you have and/or how desperately you feel you need one
what is the long tax number for freelancer?(not the insurance number)so i have found a job but they ask me for a long tax number to pay the tax.(where i can ask for this tax number) They are most likely referring to a UTR or Unique Tax Reference. This does not prove that you are a freelancer/self-employed. It only means you complete a Self Assessment form (which anyone can do really). This number is not really relevant to companies unless you are in the Construction Industry.
and my last question is if i work for an employer in full times can i work sometimes in freelance? Yes you can work as many employed and/or freelance jobs as you like, as long as HM Revenue and Customs knows about it
I can't understand what difference it makes to firms that you work for; you are self-employed and therefore responsible for you're own tax and NI.
So I would assume it has nothing to do with tax purposes and should not stop you getting the same work as a sole trader.
I can only suggest IsoBuster, I downloaded it for some random reason, and have used it quite a bit since. So for the price, I've definately had my use. I personally could not find anything better to be honest.
From what Ive read in the past, it would be your local council I think who create these enterprises, benefits and grant for local businesses and startups. So I'd check their site out, also try Business Link as they would have contacts for that sort of thing also. 🙂
Printing.com? They have franchises nationally, they can send out free samples are have a quick turn-around, their own top quality design service and are reasonably priced.
might be worth a look 🙂
