FAO Website Creators

zetec452 · 27 Nov 2006 at 09:12

The only problem with freelance is that if you have a quiet time you don't get paid. I'd rather have a full time paid for web development job.

Dj_Jestar · 27 Nov 2006 at 09:43

Swings and roundabouts.. exactly the same argument for contracting vs permanent.

Obviously, you only go into freelance if you are confident if you will get enough work, you wouldn't setup, then go looking for work.. always the other way round.

Mark M · 27 Nov 2006 at 09:48

robmiller said:
I never even come close to earning £5,035 a year in anything, so I don't declare it. This might change this year, 'cause I want to do more work and save up for both a car and a 350D, but I don't know

You still have to declare it, you will receive a penalty of £150 per year for every year you should have been registered as self employed.

Also do you not have any other form of income? I would imagine you would do unless your a student. If you do then your personal allowance will be used up and the £5k would be taxable at 22%, or 40% if you earn more than £33,300.

It would probably be in your interest to register as self employed as you could probably create losses in the years that you were earning a small amount and carry them forward to offset against a "better" year to reduce your tax.

Cuchulain · 27 Nov 2006 at 09:53

The only problem with being a salaried developer/designer is that the job get's stale very quickly. I've been doing it for nearly 7 years now (salaried) and it's becoming like a factory assembly line.

Augmented · 27 Nov 2006 at 09:53

Dj_Jestar said:
being your own boss, and working when *you* want to...

I can do that... actually, forget the 'can'

.

But, yes, I do see the attraction of going freelance - I think I'm not strong-willed enough to work under my own control, and do have respect for people who can make a success of it.

robmiller · 27 Nov 2006 at 10:18

Mark M said:
You still have to declare it, you will receive a penalty of £150 per year for every year you should have been registered as self employed.

I was planning on doing that a while back, I probably will. It costs nussink, right?

Mark M said:
Also do you not have any other form of income? I would imagine you would do unless your a student. If you do then your personal allowance will be used up and the £5k would be taxable at 22%, or 40% if you earn more than £33,300.

I am indeed a student and do indeed not have any other form of income :cool:

Beansprout · 27 Nov 2006 at 10:45

Mark M said:
the £5k would be taxable at 22%, or 40% if you earn more than £33,300.

Only the amounts *above* the threshold...not the whole £5k

Sic · 27 Nov 2006 at 10:47

being the jobless scumbag that i am, i really want to 'go freelance', as it were, but i just can't see myself being able to rack up enough work to stay afloat. that said, i've got plenty more potential customers to call around...it's just it doesn't seem very promising!

Mark M · 27 Nov 2006 at 11:23

Beansprout said:
Only the amounts *above* the threshold...not the whole £5k

Yup, as I said if he had other income that used up his personal allowance then the 5k will be fully taxable @ 22% or 40%

Mark M · 27 Nov 2006 at 11:26

robmiller said:
I was planning on doing that a while back, I probably will. It costs nussink, right?

Doesnt cost anything to register for self employment, the only cost will be if you need advice from an accountant etc. You can submit your return online for free.

toString · 27 Nov 2006 at 11:28

If you register as self-employed, are you able to claim the VAT back on things like a new computer? Laptop? As these are tools of the trade, so to speak?

Dj_Jestar · 27 Nov 2006 at 11:36

blade007 · 27 Nov 2006 at 11:42

no. not allowed to claim vat back, unless you are VAT registered.

you can offset the costs against your income tax though

Mark M · 27 Nov 2006 at 11:50

Need to have a turnover of £60k to become VAT registered, can become VAT registered with a lower turnover but its quite unusual.

Mark M · 27 Nov 2006 at 11:51

You cant offset the cost of a computer, or any other capital item, against your Income Tax as a whole. It has to be done via capital allowances

Dj_Jestar · 27 Nov 2006 at 11:52

It was my understanding (according to my old dear who is an accountant) that because of the services you provide, which have VAT, you can claim the VAT back from the tools of your trade, in any scenario, which in this case means your time and products delivered have VAT, and because you used your comp. to provide them, you can claim VAT back. However, she may have been referring to the offset, rather than claiming VAT come to think of it.

Mark M · 27 Nov 2006 at 11:59

Dj_Jestar said:
It was my understanding (according to my old dear who is an accountant) that because of the services you provide, which have VAT, you can claim the VAT back from the tools of your trade, in any scenario, which in this case means your time and products delivered have VAT, and because you used your comp. to provide them, you can claim VAT back. However, she may have been referring to the offset, rather than claiming VAT come to think of it.

Shes wrong on both accounts. If you want a proper accountant then give me call

If you are not VAT registered then your services DO NO have VAT on them and no VAT can be reclaimed. You just have to suffer paying the VAT inclusive price as apposed to a registered trader, but he will also have to charge VAT on sales which a non-registered person wouldnt have to do.

Dj_Jestar · 27 Nov 2006 at 12:01

She is a proper accountant tbh, and I trust her rather than some newkie on an internet forum

(Though she is originally a toon herself

)

Dunno, will ask her about it again tonight, or might not because being the type of mother she is, she'll get it into her head I am actually interested in setting up a company and it'll be 6 months before she stops giving me advice and dropping panflets/leaflets/stuff with advice to me.

UnknownSoldier · 27 Nov 2006 at 12:17

robmiller said:
I charge the going rate, I just don't work that much—a combination of laziness, not needing the money that much, and a lack of clients—if people were hammering the door down to get me to work for them then I'm sure I'd do more.

I could probably get more work if I really wanted to, which I will do over the next year (hopefully!).

So what is the going rate?

Dj_Jestar · 27 Nov 2006 at 12:21

That's a secret of the trade

It does depend on your experience, willingness to do the job, and your availability.. i.e. if you are very experienced, have a very impressive portfolio, and either don't want to do the job, or have too much to do already, you can try charging through the nose for it.

However, if you are wanting to get off the ground.. ask for very little and provide a damn good service. Start with something like £15/hour or less if you really, really want to get going. You can soon be charging £50+/hour. Hell, I've done jobs for £500 for just a few (like 3) hours work..

Just remember.. never say no, just increase your rate.