Questions about invoicing and starting out.

[Marie]

Hi all,

I am just about to start as a Project Officer (media relations, admin., image editing) on a freelance basis for a couple of months, after that the freelancing will most likely turn into being employed by the company.
I don't have a registered company and I wonder if that really would be an option at this stage, as I might go from freelance to being employed in a few months' time.
For the next couple of months, how do I invoice the company as I am not used to how this is done in the UK. I will be paid on an hourly basis - should I include VAT and/or anything else to the hourly rate?
Anything else I should think of? All tips and advice most welcome!
Kind regards,
Marie

[playboy_bunnie]

Originally Posted by Marie

I don't have a registered company and I wonder if that really would be an option at this stage, as I might go from freelance to being employed in a few months' time.

Yes you would need to register as self-employed with HM Revenue and Customs within 3 months of starting work.

Originally Posted by Marie

For the next couple of months, how do I invoice the company as I am not used to how this is done in the UK. I will be paid on an hourly basis - should I include VAT and/or anything else to the hourly rate?

Get a contract drawn up before you commence work, send invoices say every month, or one big invoice at the end of the contract. You do not need to register for VAT unless you are expecting to earn over £64,000.

[Marie]

Hi,

Many thanks for your reply. What is the common thing when invoicing in the UK; to set a due date in week, 2 weeks or a month from day of invoice?
Is there somewhere online, or other where I can get templates of invoices?

Thanks,
Marie

[Ardesco]

Originally Posted by playboy_bunnie

You do not need to register for VAT unless you are expecting to earn over £64,000.

However it may be beneficial to register on the flat rate scheme. You can then claim 17.5% vat on top of all your invoice and then only pay 13% to HMRC. If you do not make many purchases that you wish to claim VAT back on you can get a decent bonus from this.

[Ardesco]

Originally Posted by Marie

Hi,

Many thanks for your reply. What is the common thing when invoicing in the UK; to set a due date in week, 2 weeks or a month from day of invoice?
Is there somewhere online, or other where I can get templates of invoices?

Thanks,
Marie

Up to you really, 30 days or 14 days from the date of the invoice are fairly common, however 7 days is not unheard of. You can send a reminder and claim interest if they do not pay you in the time stated on your invoice, however this is probably not the best way to build a "working relationship" with your clients and may mean they don't ask you to do anything in the future.

[Sue Lawrence]

Hi,

You don't need to register for VAT unless you eanr over a certain limit.

If you want help on the info to include on an invoice, use an invoicing package. There are a number on the market that aren't too expensive.

Sue
SliQTools Ltd - Small Business Accounting Software