question to freelancers
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- tonks
I have been freelancing for about 6 months. My agency has told me now that I need to be registered as a limited company as Gordon Brown is cracking down on freelancers doing their own accounts, and companies wont employ you unless you are on some kind of pay role. I have been told to go with a company called blue intellect who will sort out all your accounts/tax returns/monthly payments etc. They take 5% of your earning a month to do this. I have been looking after myself until now and just put aside all my money for tax in a separate account and then I will probably hire an accountant when I need one when its time to do my tax return.
Has anyone registered themselves as a limited company or gone with a company like blue intellect? How do you go about it?? any advice please!
- Bluejam0
registering a company
http://www.companieshouse.gov.uk…accountants
http://www.taxassist.co.uk/have used both services (taxassist branch in London Bridge) and both are very good.
why go with a company that takes a percentage (of your earnings) when an a accountant (such as taxassist) charge a fixed monthly fee?
- UndoUndo0
the percentage cut sounds rubbish
- ********0
I doubt that Gordon Brown is cracking down on that...sounds dubious and well worth looking into.
I suspec the company you are working for is trying to wheedle its way out of paying employment entitlements that you should be getting as an in-house freelancer. This includes sick pay, holiday entitlement and in some cases maternity/paternity leave.
The other half of your question. I would avoid the %fee option and get an accountant to do you books. Ball park figure from a friend who does that is that fee's to accountants for him total to about 1000 a year.
- UndoUndo0
checkout IR35 - this is the Inland revenue document that addresses contractors working for a single client (they say you should be employed by that client). a quick google will bring results
- tonks0
thanks for the advice there. I have to say im not keen on going under another company. It takes away all the point of being freelance for starters. For some of the bigger agencies I have worked for I have had to go on my agencies pay role.. do I have to become a limited company to get out of this. ALso briefly... What does that actually mean. What does it do. Will it change the way I dp things? DO I have to pay for it?? Excuse my lack of knowledge on the subect but its a bit knew to me...
THanks fro you help on this.
- UndoUndo0
when limited you have to use a chartered accountant (more expensive) and submit your accounts yearly, you can also go VAT registered meaning you charge VAT on yr invoices and claim back VAT your charged on items you buy (can work in your favour).
- ********0
You've done the right thing in asking questions, but Its too large a subject to be handled on this forum effectively.
I would look on amazon/waterstones for books on setting up company. There may even be design specific resources you can access, perhaps linked from the design council.
The IR35 post wa a good one too, sort of what I was touching upon in regards to your employer trying to avoid any of those sort of obligations.
Good luck