Starting out - Freelance UK Forums

Marketing Jem · 05-06-2008, 12:56 PM

Hello,

I am looking at starting up as a freelancer after I have completed my CIM Marketing Diploma in June this year. I have three years hands on marketing and PR experience as a Manager plus my qualification if all goes well for my final modules.

I work full-time at present and due to a mortgage and bills I cannot afford to give up work and go straight into freelance so I am looking at doing some ad hoc work in my free time to test the water to see if full time freelance work is viable.

My main concerns are tax issues with having (hopefully!) a second income and finding clients. I do have some good contacts which I will utlise and I am comfortable with networking but of course with working full-time it is going to be hard to find the time to do that.

I am looking at part-time marketing/pr jobs to enable me to cover my bills and necessary costs which would give me more time to work on a freelance basis and find clients.

I would love any advice from seasoned freelancers on their experiences and what I would need to consider for tax and invoicing purposes.

Also if anyone knows of anyone who I could speak to for advice and setting up I would be grateful.

Thanks

Jemma

timhoward · 05-15-2008, 01:32 PM

HI Jemma,

I can give you some advice on the accounting side of things, normally if your profits are going to be less than £5435 PA I would normally suggest going as a sole trader, if you are a middle rate tax payer you will just pay 20% income tax on your earnings, above £5435 will incur another 8% Class 4 National Insurance, however this is depending on the work you get, some agencies insist on you being a Limited Company to move any potential burden of employment taxes from them to your Limited Company.

You will need to register as self employed using form CWF1 within 3 months of starting to trade.

Once you build up your income I would then suggest opening a Limited Company to minimise your tax liabilities.

contact Danbro accounting. they give free advice on this type of thing too.

Hope this helps.

Marketing Jem · 05-15-2008, 02:14 PM

Hello Tim,

Thank you for you reply and advice. That is a great help, I will call Danbro for some further advice as well.

Thanks

Jemma

05-06-2008, 12:56 PM	#1 (permalink)
Marketing Jem New Poster Join Date: May 2008 Posts: 2	Starting out Hello, I am looking at starting up as a freelancer after I have completed my CIM Marketing Diploma in June this year. I have three years hands on marketing and PR experience as a Manager plus my qualification if all goes well for my final modules. I work full-time at present and due to a mortgage and bills I cannot afford to give up work and go straight into freelance so I am looking at doing some ad hoc work in my free time to test the water to see if full time freelance work is viable. My main concerns are tax issues with having (hopefully!) a second income and finding clients. I do have some good contacts which I will utlise and I am comfortable with networking but of course with working full-time it is going to be hard to find the time to do that. I am looking at part-time marketing/pr jobs to enable me to cover my bills and necessary costs which would give me more time to work on a freelance basis and find clients. I would love any advice from seasoned freelancers on their experiences and what I would need to consider for tax and invoicing purposes. Also if anyone knows of anyone who I could speak to for advice and setting up I would be grateful. Thanks Jemma

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05-15-2008, 01:32 PM	#2 (permalink)
timhoward Regular Poster Join Date: Nov 2007 Posts: 11	HI Jemma, I can give you some advice on the accounting side of things, normally if your profits are going to be less than £5435 PA I would normally suggest going as a sole trader, if you are a middle rate tax payer you will just pay 20% income tax on your earnings, above £5435 will incur another 8% Class 4 National Insurance, however this is depending on the work you get, some agencies insist on you being a Limited Company to move any potential burden of employment taxes from them to your Limited Company. You will need to register as self employed using form CWF1 within 3 months of starting to trade. Once you build up your income I would then suggest opening a Limited Company to minimise your tax liabilities. contact Danbro accounting. they give free advice on this type of thing too. Hope this helps.

05-15-2008, 02:14 PM	#3 (permalink)
Marketing Jem New Poster Join Date: May 2008 Posts: 2	Hello Tim, Thank you for you reply and advice. That is a great help, I will call Danbro for some further advice as well. Thanks Jemma