Web Design Forums

Narate · 04-05-2005, 05:00

Anyone suggest the best way to receive payments for design work from a client. If they do it as a direct bank transfer then will I need to do a tax self assesment form to make sure I'm fully legit.

Also is there any legalities that a freelancer must know, for instance do I need to declare that I am on a wage even if its pay per job etc.

Was going to setup a seperate bank account for all transactions but want to make sure I'm doing it all right.

dan · 04-05-2005, 05:06

You need to register as self employed with the Inland Revenue. You will need to fill out a self assesment form. It's not as hard or as scary as you might think. Have a chat with business link, your bank and the tax office, they'll all happily point you in the right direction. Buisiness Link were great for me just to get me started on the legal/finance side.

Of course if it's not your main form of income and you're only pulling in a couple of hundred quid a year you should be fine without - not that I said that

JiRaffe · 04-05-2005, 06:52

i got an HSBC business bank account when i was freelancing and for the first year they dont charge you anything. then i just asked for cheques from clients and paid them into that account

the main thing to do when your self-employed is record everything you spend, including travel costs, phone line, internet, new computer, new software, hosting etc... it's all tax deductable. the more you spend, the less you get taxed for

tomson · 04-05-2005, 07:56

i wouldn't bother with a seperate account - all my money goes into one account and I sort out my own tax. I get clients/agencies to pay straight into that account via bank transfer (or a cheque if they must)
If you look on the IR website theres a number for self employed folk - give them a ring and have a chat, they're pretty useful and know their stuff.

Narate · 04-05-2005, 08:01

I asked one of the agencies Im doing some work to sort out the payments into me account but they said it would be too exspecive because of VAT so it would effect their over heads. I was lost by the time he finished the sentence.

The only reason I wanted to get a "Work account" is so I dont have to give my personal account details out to strangers, with all this identity theft nonsense.

Thanks for the info so far.

tomson · 04-05-2005, 08:19

Some agencies won't pay gross into you account as they will be responsible for the tax if you pull a fast one and dont declare it and get found out...so, you could look at using an umbrella company (i use Parasol IT) who liaise with the agency and sort out your tax. But, they charge you a fee and its an extra step in the process of getting paid...but its better than not getting paid. The other solution is to set up a limited company.

weldo · 04-05-2005, 09:37

Get them to pay you in weed.

I'll take an ounce.

Narate · 04-05-2005, 10:18

Sounds like a hell of alot of hard work for a few hundred quid. By the time Ive finished with tax I'll prolly receive about £10

tomson · 04-05-2005, 10:27

you need to talk to the agency then - but if you're gonna be doing more freelancing then you dont want to have to fanny about everytime just to get paid. But for a few hundred quid (a days work) then yeah it is a bit of work.

top_buzz · 04-05-2005, 11:11

Quote:

Originally Posted by tomson

you need to talk to the agency then - but if you're gonna be doing more freelancing then you dont want to have to fanny about everytime just to get paid. But for a few hundred quid (a days work) then yeah it is a bit of work.

i wish i got a few hundred quid for a days work :P

seen.to · 04-05-2005, 14:05

Quote:

Originally Posted by weldo

Get them to pay you in weed.

I'll take an ounce.

My first paid site, back in 97, paid me with 4 oz of the most amazing skunk ever and 4oz of rather nice pollen :-D

Now I take checks, bank transfers, paypal, cash - whatever's best for the client and get's me paid fastest.

weldo · 04-05-2005, 15:34

I'm doing a site for my mates band in exchange for 'another' Marshall combo.... !!!

Brown · 04-05-2005, 17:57

i've just done one for 2 weeks free in turkey.

sometimes it pays off.

weldo · 05-05-2005, 03:19

Cool !!

Narate · 05-05-2005, 05:04

Is there a personal limit of about £4000 before I have to pay tax?

JiRaffe · 05-05-2005, 05:56

only if you're not earning any other money elsewhere. i think your limit is about 4600 for any income which includes salaries, freelance work, interest on bank accounts, shares etc...

Luke Redpath · 05-05-2005, 09:59

I just have a separate savings account (too tight to pay for a business account, plus I can't really see the value). I get income paid into that (in theory, I've been waiting for money from clients for a while now), then pay myself a "wage" out of that, to keep my savings and tax money in check.

Joewebber · 05-05-2005, 11:01

The new issue of Computer Arts Projects might be useful

http://www.computerarts.co.uk/about_...jects_issue_71

seen.to · 05-05-2005, 20:44

Quote:

Originally Posted by weldo

I'm doing a site for my mates band in exchange for 'another' Marshall combo.... !!!

Haha... how many you got?

Been missing my music gear big time lately (left it all in England till I'm certain I'm staying over here).

Oh yeah, do you live anywhere near Huyton btw?

04-05-2005, 05:00	#1 (permalink)
Narate Royalty™ Join Date: Feb 2003 Location: Manchester (UK) Posts: 3,211	Freelance and banking Anyone suggest the best way to receive payments for design work from a client. If they do it as a direct bank transfer then will I need to do a tax self assesment form to make sure I'm fully legit. Also is there any legalities that a freelancer must know, for instance do I need to declare that I am on a wage even if its pay per job etc. Was going to setup a seperate bank account for all transactions but want to make sure I'm doing it all right.

04-05-2005, 06:52	#3 (permalink)
JiRaffe Ur mother's ur brother? Join Date: Jun 2003 Location: Liverpool Posts: 916	i got an HSBC business bank account when i was freelancing and for the first year they dont charge you anything. then i just asked for cheques from clients and paid them into that account the main thing to do when your self-employed is record everything you spend, including travel costs, phone line, internet, new computer, new software, hosting etc... it's all tax deductable. the more you spend, the less you get taxed for __________________ ::: TC Magazine :::

04-05-2005, 09:37	#7 (permalink)
weldo now with added beard Join Date: Mar 2004 Location: Liverpool Posts: 5,232	Get them to pay you in weed. I'll take an ounce. __________________ fuck signatures

04-05-2005, 15:34	#12 (permalink)
weldo now with added beard Join Date: Mar 2004 Location: Liverpool Posts: 5,232	I'm doing a site for my mates band in exchange for 'another' Marshall combo.... !!! __________________ fuck signatures

05-05-2005, 03:19	#14 (permalink)
weldo now with added beard Join Date: Mar 2004 Location: Liverpool Posts: 5,232	Cool !! __________________ fuck signatures

04-05-2005, 05:06	#2 (permalink)
dan Iris Folder Join Date: Apr 2003 Location: smokey Posts: 2,672	You need to register as self employed with the Inland Revenue. You will need to fill out a self assesment form. It's not as hard or as scary as you might think. Have a chat with business link, your bank and the tax office, they'll all happily point you in the right direction. Buisiness Link were great for me just to get me started on the legal/finance side. Of course if it's not your main form of income and you're only pulling in a couple of hundred quid a year you should be fine without - not that I said that

04-05-2005, 07:56	#4 (permalink)
tomson hairball Join Date: May 2003 Location: London Posts: 3,158	i wouldn't bother with a seperate account - all my money goes into one account and I sort out my own tax. I get clients/agencies to pay straight into that account via bank transfer (or a cheque if they must) If you look on the IR website theres a number for self employed folk - give them a ring and have a chat, they're pretty useful and know their stuff.

04-05-2005, 08:01	#5 (permalink)
Narate Royalty™ Join Date: Feb 2003 Location: Manchester (UK) Posts: 3,211	I asked one of the agencies Im doing some work to sort out the payments into me account but they said it would be too exspecive because of VAT so it would effect their over heads. I was lost by the time he finished the sentence. The only reason I wanted to get a "Work account" is so I dont have to give my personal account details out to strangers, with all this identity theft nonsense. Thanks for the info so far.

04-05-2005, 08:19	#6 (permalink)
tomson hairball Join Date: May 2003 Location: London Posts: 3,158	Some agencies won't pay gross into you account as they will be responsible for the tax if you pull a fast one and dont declare it and get found out...so, you could look at using an umbrella company (i use Parasol IT) who liaise with the agency and sort out your tax. But, they charge you a fee and its an extra step in the process of getting paid...but its better than not getting paid. The other solution is to set up a limited company.

04-05-2005, 10:18	#8 (permalink)
Narate Royalty™ Join Date: Feb 2003 Location: Manchester (UK) Posts: 3,211	Sounds like a hell of alot of hard work for a few hundred quid. By the time Ive finished with tax I'll prolly receive about £10

04-05-2005, 10:27	#9 (permalink)
tomson hairball Join Date: May 2003 Location: London Posts: 3,158	you need to talk to the agency then - but if you're gonna be doing more freelancing then you dont want to have to fanny about everytime just to get paid. But for a few hundred quid (a days work) then yeah it is a bit of work.

04-05-2005, 17:57	#13 (permalink)
Brown volkswagen yellow & gold Join Date: Apr 2003 Location: london, england. Posts: 6,214	i've just done one for 2 weeks free in turkey. sometimes it pays off.

05-05-2005, 05:04	#15 (permalink)
Narate Royalty™ Join Date: Feb 2003 Location: Manchester (UK) Posts: 3,211	Is there a personal limit of about £4000 before I have to pay tax?

05-05-2005, 05:56	#16 (permalink)
JiRaffe Ur mother's ur brother? Join Date: Jun 2003 Location: Liverpool Posts: 916	only if you're not earning any other money elsewhere. i think your limit is about 4600 for any income which includes salaries, freelance work, interest on bank accounts, shares etc... __________________ ::: TC Magazine :::

05-05-2005, 09:59	#17 (permalink)
Luke Redpath Barney army! Join Date: Mar 2003 Location: London Posts: 696	I just have a separate savings account (too tight to pay for a business account, plus I can't really see the value). I get income paid into that (in theory, I've been waiting for money from clients for a while now), then pay myself a "wage" out of that, to keep my savings and tax money in check. __________________ Luke Redpath .::. Software Engineer .::. Reevoo - Real Reviews From Real Customers

05-05-2005, 11:01	#18 (permalink)
Joewebber Senior Member Join Date: Feb 2004 Location: Exeter Posts: 778	The new issue of Computer Arts Projects might be useful http://www.computerarts.co.uk/about_...jects_issue_71

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