First time freelancing...

antijoke · 3 Mar 2017 at 07:11

So Ill be doing my first bit of web freelance work shorty and now ahead of doing it I need to know what I have to do for invoicing.

I've no idea what I have to register or where I have to register it? The money will only be a nominal amount (fee hundred pounds).

AHarvey · 3 Mar 2017 at 10:26

Are you going to be doing freelance work from now on or not?

antijoke · 3 Mar 2017 at 10:37

Possibly yes.

Hyburnate · 3 Mar 2017 at 10:40

You'll need to apply for self assessment tax and you'll have to pay the tax on it.

antijoke · 3 Mar 2017 at 10:40

Hyburnate said:
You'll need to apply for self assessment tax and you'll have to pay the tax on it.

How does this effect my day job?

Hyburnate · 3 Mar 2017 at 10:45

antijoke said:
How does this effect my day job?

It doesn't. I'm assuming you're PAYE at your current day job? My understanding from when I spoke to our finance team about it was that I could either share the tax or just pay tax on freelance from the offset and give my day job my full personal tax free allowance.

e; From a legal standpoint, it won't matter because they won't know, but just ensure that your contract allows you to do it. It may not stand up in court but if you're reliant on your day job you don't want to **** them off for a few hundred.

antijoke · 3 Mar 2017 at 10:50

Well that's simple, my current place didn't give me a contract.

Yes, I am PAYE. So I register for self assessment and then just tell them at the end of the year what I earnt from freelancing and then pay the tax bill?

Hyburnate · 3 Mar 2017 at 11:11

antijoke said:
Well that's simple, my current place didn't give me a contract.

Yes, I am PAYE. So I register for self assessment and then just tell them at the end of the year what I earnt from freelancing and then pay the tax bill?

That's as far as I know all there is to it

You could also look to do some savings of your utilities etc too, this is the reason I looked into it. Not only for extra cash but also to save some cash on bills

antijoke · 3 Mar 2017 at 11:15

How do you save on utilities?

bloodiedathame · 3 Mar 2017 at 11:17

antijoke said:
How do you save on utilities?

A very small proportion you'll be able to class as a business cost when you work from home. It'll be **** all though.

AHarvey · 3 Mar 2017 at 11:43

antijoke said:
Well that's simple, my current place didn't give me a contract.

Yes, I am PAYE. So I register for self assessment and then just tell them at the end of the year what I earnt from freelancing and then pay the tax bill?

Yes, the self assessment asks for figures from P60's for your current job, it'll ask what you've made and do the calc's for you.

I got £600 back from my last one as I changed jobs a couple of times.

Just record everything. I don't claim for things like broadband but I do for my mobile phone.

Tbh, find a local accountant, most offer a free consultation and go with them. Saves you the hassle and you just have to track incoming and outgoing, they do the rest.

antijoke · 3 Mar 2017 at 11:57

Do I need to do the P60 now or would that be April 2018 after this year?

AHarvey · 3 Mar 2017 at 12:57

I don't think you'll need to do anything until 2018 anyway, when i started it was register within 3 months of taking first payment/starting and you work a year behind the current year. Jan 31st deadline was 2014-2015, I've still got 2015-2016 to do (if I am remembering it correctly. I do it so rarely as it's not something I actively push)