Can I freelance?

I've been having the most difficult time finding a full-time position since getting my FLR(M) in April, however I have been asked to undertake some social media/blogging work by two different people as that is where my studies lie.

I'd love to do it, even though it will be for pocket money, but at least it will give me the experience I so desperately need since graduating and having a gap in my CV now. I have been encouraged to take it more seriously and make it my own business but I am not sure about that really. Right now I just appreciate some experience.

I was wondering what the rules are around that. Am I even allowed? Do I need to establish a business and sign up with HMRC? I am more than happy to do it because I want to follow the rules, but I want to make sure it's what I should be doing. I am so confused!

Thanks all!

Once you're on a spousal/FLR(M) visa, you have the same rights to work as any British citizen, so you can work in whatever type of employment you like (providing it's not illegal, of course )... there are no restrictions.

I'm not sure about the HMRC/self-employment side of things though or whether you would need to set up a business - hopefully someone else will know more about what you need to do in that regard.

You do have to register with HMRC, but you don't need to set up a company to work freelance, you can be what they call a "sole trader" and just work using your own name. Here are a couple of links that should help point you in the right direction:

https://www.gov.uk/working-for-yourself/what-you-need-to-do

https://www.gov.uk/set-up-sole-trader

Thanks guys!

I assumed I wouldn't make enough to report by FAR but looks like I would still need to and pay, which isnt an issue. I am most concerned about doing things by the book. I hope I can figure out the system!

Thanks again!

Like camoscato said, you need to register with HMRC as a sole trader. They'll send you stuff so that you can access things through the online portal.

Make sure you invoice clients properly, so that you have a paper trail, and keep receipts for any and all business expenses. I maintain a spreadsheet with all my incoming payments by invoice number (each client gets assigned a unique number, so that both they and I can keep track). Set aside the appropriate amount for both tax and NI contributions (I use an ISA for this, so I don't get double-taxed on what I'll use to pay my tax).

By the end of an April, I receive the various end-of-March payments, so I can close out that fiscal year. (I am very lucky in that all my clients pay 30 days net without fuss.) I gather up all my receipts (making any paper receipts electronic, for easy storage) for the fiscal year's business expenses, finalise the spreadsheet and send everything via Google Docs to my accountant, who is worth her weight in gold, because I'm now full-time self-employed, and don't want the hassle. Plus, she gives me the assurance that it's all done right.

You can easily do it yourself, though. After moving over, I was in full-time employment and self-employed on the side, so I wasn't making enough extra to make the hours I'd spend getting the correct allowances worth it. Like all government-related things, a lot of the language is what-does-that-MEAN ropey, but it's ultimately quite easy to do on your own. 

They give you like seven different ways to pay, and must do so by 31 Jan if filing electronically. So, you'll be working as a sole trader in the 2016-17 tax year, will file sometime after 6 April 2017, and will have to pay by 31 Jan 2018. At the same time, based on your 2016-17 return, HMRC will calculate two 'payments on account' -- essentially, you will prepay on the final 2017-18 amount. This will result in smaller lump sum due for 2017-18.

I have a mate who will tell you the following is absolutely bonkers, as he prefers to do everything at the last moment, but I pay straightaway. So although my 2015-16 tax isn't due until January 2017, I've paid that. Also, three months into the new tax year, I've paid my first payment on account (also due January 2017). My plan is to have the second payment on account (due July 2017) paid by done by October. That will give me six months to continue to set money aside, with the idea I'll be able to give myself a big, fat 'bonus' in May 2017 when I find out my final figure. (In addition, it means I have an HMRC return to submit with my US taxes by 15 June of any year.) My mate, on the other hand, prefers to have his money in hand for as long as possible and doesn't mind working in one fiscal year to pay for the previous fiscal year.

Either way works, so you can do whatever across the gamut you're comfortable with, so long as you're fully paid up on time.

That's all I can think of right now. Jimbocz on this forum knows about this stuff, too -- he might have many pence to add. There might be things I'm wrong about, but my accountant didn't say I was doing anything wrong and thanked me for being organised, so all seems OK.

Thanks for the recommendation, but I really hesitate to give advice because I'm no expert.  In fact, I'm really starting to wonder if I'm doing everything completely wrong by having a limited company and a business account.  That's something I'm going to have to sort out between contracts. 

I can  recommend a web site and forum called contractoruk that has plenty of documentation, some of which will be very pertinent. 

My accountant actually has tons of useful things like invoice templates at http://www.sjdaccountancy.com

They might be ridiculously expensive for the amount of work you are doing, but the info is free. 

Good luck!

Thanks for the recommendation, but I really hesitate to give advice because I'm no expert.  In fact, I'm really starting to wonder if I'm doing everything completely wrong by having a limited company and a business account.  That's something I'm going to have to sort out between contracts. 

See, and I was wondering if I should become a limited company, whether that would be advantageous. I don't know what the best advice is, but I figure what I'm doing ::seems:: to be working from HMRC's perspective so ... it's OK? Maybe you're doing it right only if you experience a healthy level of self-doubt.

Actually, I'm completely confident that the limited company route is the right thing for me in relationship to HMRC and is the most efficient way to minimise taxes paid to Them.   It had better be, I'm paying an accounting firm a lot of money each month to manage that.  Of course I'd hesitate to tell anyone else to do the same because I only know about my situation. 

Where I think I might be going wrong is in relation to the American tax authorities.  I fear that my company bank account needs some reporting and my limited company might    Have American tax implications as well, contrary to what I was told when I set it all up.   That's the bit I've got find out about when I've got time.

By the way, how do you handle VAT?  Are you on the flat rate scheme?  OP, beware! VAT is something you've got to know about and deal with or the HMRC will be vengeful.

I'm well below the VAT threshold, while making a very nice wodge. So I haven't registered but then, equally, don't claim any VAT back on any of my very limited expenses (which are essentially things like the home office space, software subscriptions). My accountant just did the deductions according to whatever rules there are -- I didn't do those when freelancing was just a side thing, just paid the raw figure, so I let her handle it.

I suppose, with the difference, the flat-rate thing would get me back about £100 a year? Which doesn't seem worth it for the time that would be required to secure it. But if I got into the territory of the VAT threshold or had a big outlay on VAT-taxed items for my work, I'd have the accountant all over it.

The website said I would have to sign up.for VAT if I was making like £83k, and I don't even think I'll be making 2k if I'm honest. I just wanted to do a little side work to earn experience :-/ to be honest, this is making my head spin a bit and doubting whether to do it or not :-(

The website said I would have to sign up.for VAT if I was making like £83k, and I don't even think I'll be making 2k if I'm honest. I just wanted to do a little side work to earn experience :-/ to be honest, this is making my head spin a bit and doubting whether to do it or not :-(

Sorry, I shouldn't have hijacked the thread to talk about VAT when it looks like it's not a concern for you.  I'm going to shut up now and limit my advice to where to get Root Beer!

Sorry, I shouldn't have hijacked the thread to talk about VAT when it looks like it's not a concern for you.  I'm going to shut up now and limit my advice to where to get Root Beer!

Don't be silly! It is a legitimate thing to think about when in business and something I would have brought up if I thought this was going to be something bigger than it is

The website said I would have to sign up.for VAT if I was making like £83k, and I don't even think I'll be making 2k if I'm honest. I just wanted to do a little side work to earn experience :-/ to be honest, this is making my head spin a bit and doubting whether to do it or not :-(

You don't have to be VAT-registered. It just means you can't claim any VAT back for business expenses. In your situation, where you're just looking at a couple grand, it's almost certainly not worth the hassle, so don't worry about it.

Filling in the return is very do-able on your own. It's a government (online) form, so there will be things that annoy you, but the online system has little pop-ups with explanations (most of which are at least somewhat helpful). At the end, HMRC will tell you how much you owe -- income tax and Class 2 and Class 4 NI contributions are all bundled these days (it wasn't for my first two years here, and I'd annoyingly get random NI bills in the post), so it'll be a lump sum. HMRC will also tell you what 'payments on account' are due, and when. And you'll have plenty of time to sort them.

If you have a freelance-able skill, I'd highly recommend it. You're in the particular situation of wanting to have something for the CV but, in general, it's a great way to open doors. My main client is one I previously freelanced for in my spare time (they would have me as a full-time employee, but I'm not in a visa situation to move to Zurich) -- so it could potentially turn into a full-time position, if that's your goal.

Alternately, you're in the perfect position to make a go of it as a freelancer and start building a stable of clients. You don't have to worry about how you're going to pay for health insurance. You don't have to break your brain at the end of a regular workday/over a weekend because you have a full-time job. When you prove you're reliable and responsive, and have a portfolio of good work, you can parlay it into just about anything you want.

Don't be silly! It is a legitimate thing to think about when in business and something I would have brought up if I thought this was going to be something bigger than it is

Thanks for that!

On a broader note, if you want a job it's a great idea to free lance or even volunteer.  You'll gain confidence and the next time you are asked it will be "of course I can work here, you aren't the first person I've worked for here " and then it will be a non issue.  If you want to be permanent, your client will eventually offer you a full time job.  They always do.

Thanks for that!

On a broader note, if you want a job it's a great idea to free lance or even volunteer.  You'll gain confidence and the next time you are asked it will be "of course I can work here, you aren't the first person I've worked for here " and then it will be a non issue.  If you want to be permanent, your client will eventually offer you a full time job.  They always do.

At that point would I cease to be charging them for my services and then be on their books?

Sorry if these are dumb questions. I always worked for others and never had a problem with it, but needing something rather than nothing right now has got me thinking. Ive been in touch with the local business centre to see if they can help and they kind of, sort of, pointed me in a direction, just hope it's one easy to navigate :-P