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| #8  22-Nov-2005, 17:19 | |||
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| Lots of benefits. Oh, yes. I freelanced doing advertising, design and retouching work for about 8 years - mostly enjoyable and didn't get too many non-payers.  I would say that you line of work would be pretty good for freelance contract work - either on a day to day basis or a contract basis. The hardest part I found when freelancing was talking about job costs - very easy when working for a company and it's not your money but harder to look someone in the eye and say it's going to cost xyz. It gets easier in time as you get a feel for how much people charge and what they are used to paying. So, I would definitely get a set fee in mind for what you want do and realistically know how long projects take - you don't want to be working for nothing. Also, the more clients you have, the more picky you can be about what work you want to take on. Sorry, I'm waffling but in a typically powerpoint style, here's my advice: 1. Know your fee structure and how competitors charge. We use web programmers and developers here and they are often really busy but the going rate for them is £300 per day. 2. Have reliable back-up people who can help you out on technical stuff - and know how they charge. Do you want to make money on their time or get them to invoice direct. 3. Get VAT registered - you don't need to be earning over a set amount to register, it only becomes compulsory after a certain figure. All your computer and office equipment will be tax deductable and you will also be able to claim back the VAT on most things. You also have to fill in returns every 3 month which means that you have to keep up to date with your accounts. Oh, and make sure it assessed on payments received and not on invoices sent i.e. only pay the VAT when you get paid. 4. Motorcycles are (or were) tax and VAT deductable. I bought 3 new bikes and got all the VAT back on them all as I classed it as company transport. I can't remember exactly how it works but as I was registered from my home, every time I went out my door, I was on business so petrol and consumables i.e carbon fibre  were also deductable.5. Make sure you are not bound by your contract about contacting your companies clients for work. Some (a lot) companies have legal stuff about not being able to work for existing clients when they move onto competitors. If you don't have such an agreement, take your favourite clients out to lunch and sound them out about the possibility of doing work for them at a reduced rate. Obviously, this is dangerous but you only need a couple of good clients to begin with and you'll be sorted. 6. Supplement your own clients with agency work. Money's a lot worse but will still be better than PAYE and without the financial risks. You will still get paid by the agency rather than having to chase the clients yourself. 7. Oh lastly, as a start up and with a good accountant, you will end up paying a lot less tax. I think when I started, I ended up paying about 15% as opposed to the 40% I would have been stiffed for through PAYE and this was without the extra savings on my motorbike stuff. 8. Wait until after Christmas - get your bonus first.  Good luck whatever you decide to do. Best regards simon [Edited on 22-11-2005 by marchesini]  |
| #9 22-Nov-2005, 18:05 | |||
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| Business Link which can be a source of good free help & advice... http://www.businesslink.gov.uk http://www.business.gov up, up, & away.........  |
| #10 22-Nov-2005, 23:25 | |||
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