With prices and inflation stubbornly high it’s more important than ever to keep an eye on what you’re spending. Calculate what monthly income gives you your preferred lifestyle. Use that as a target for earnings. To do this, find some way of recording all your spending, e.g.: Templates to help you target how much to
READ MORE >Posted on 31 January 2020
When starting out as a freelancer saving money is usually the last thing on your mind. You’re probably concentrating on how to earn more. But taking a few minutes to think about savings can really help you feel in control of your finances. It can also avoid nasty surprises later on. There are three types
READ MORE >Posted on 30 January 2020
There is a slightly different version of this help sheet for people living in Wales, Scotland or Northern Ireland. NB: ‘Freelance’ means someone whose income is ad hoc or regularly comes from a variety of clients or employers. It can refer to both employment (e.g. fixed-term contracts) and self-employment. See help sheet 2f for more
READ MORE >Posted on 30 January 2020
There are only two ways of being paid in the UK when you work for someone else. You are either paid as ‘employed’ or you are paid as ‘self-employed’. The word ‘freelance’ doesn’t help here, as production freelancers can be paid as employed and self-employed, depending on the nature of the job or how long you do it
READ MORE >Posted on 29 January 2020
Do you live in Scotland? There’s a different help sheet for you!See Scottish Tax and National Insurance help sheet > National Insurance Employees and company directors pay their NI via the company PAYE system. This is Class 1 National Insurance and is a percentage of the salary, normally 8% (2024-25). National Insurance for Sole Traders
READ MORE >Posted on 29 January 2020
Things to keep If you’re paid PAYE it’s a good idea to hold on to the following bits of paper: Sole traders and people running companies need to keep hold of: These are a minimum, and you should keep them for at least 6 years. This is in case you are audited by the tax
READ MORE >Posted on 28 January 2020
Value Added Tax is a tax on the sale of goods and services. It kicks in when the seller is VAT registered, depending on the item being sold. This applies to sole traders too. A VAT-registered business is effectively a tax collector working for HMRC. The standard rate is 20%. (Some items attract a lower rate
READ MORE >Posted on 27 January 2020
Changes announced in the Chancellor’s 2016 autumn statement make the Flat Rate Scheme much less useful to a business that doesn’t buy physical ‘goods’ on a regular basis. These changes, introduced from 1 April 2017, make the Flat Rate Scheme very unattractive for freelancers and consultants. How it works Calculate your VAT as a percentage
READ MORE >Posted on 26 January 2020
You can download this annotated invoice here. We also have a downloadable template for you in two different formats: Invoice template in MS Word format > Invoice template in Apple Pages format >
READ MORE >Posted on 24 January 2020
Accountants are not there to take financial responsibility away from you!You are legally responsible for your own tax even if someone else files your returns. Support bodies vary around the UK. We have a slightly different version of this help sheet for people living in Scotland or Northern Ireland. An accountant’s main role is to help you
READ MORE >Posted on 23 January 2020
Support from family and friends is essential, especially if you are setting up. You will be working hard – even when you are not earning anything. Things to think about, and discuss with those around you: working hours – Decide when you will be a) working & earning b) working & NOT earning c) not
READ MORE >Posted on 20 January 2020
A business plan benefits you more than anyone else. It concentrates the mind wonderfully and gives you some perspective. You may also need one if you want a business bank account or a loan. It shows that you’ve thought things through. OVERVIEW / SUMMARY In a nutshell, what are the business aims and how will they be
READ MORE >Posted on 13 January 2020
People will look to you to help them understand what sort of work you are looking for. This is true of potential clients, but it’s also true of friends and family. Here are some thoughts: Work out what to say when people ask you what you do. Always make it forward-looking and optimistic. When starting
READ MORE >Posted on 12 January 2020
This help sheet is the first of two that look at agreeing work and getting paid on time. It’s not always easy to secure freelance work when you want it. But when someone wants your skills it’s important to make sure there are no misunderstandings. You also want to make sure that promises are lived
READ MORE >Posted on 11 January 2020
Wondering how to agree work in the first place? Check out help sheet 12 first: Help sheet 12 – How to agree work > Once you’ve agreed a job (in writing) and done the work, you can look forward to getting paid for your time and skills. Unfortunately there are a couple more stages to
READ MORE >Posted on 10 January 2020
LinkedIn has become an important place to have an online presence. As it focusses on work, it doesn’t get cluttered up with cats and politics. LinkedIn profiles are also highly indexed by search engines. So if you want someone to find you more easily in a work context, make sure you have an up-to-date LinkedIn
READ MORE >Posted on 10 January 2020