Freelancer on a "FIXED-TERM" contract - Tax Benefits?

BigBouncyBall

Just about to take on a new job where i'm described as being a Freelancer on a Fixed-Term Contract (for the completion of certain projects up until XX/XX/XXXX date)

Are there any favorable tax considerations here? Income Tax and NI will be taken at source just like any regular employee, but can any purchases made for my job (particularly things like train travel, computer hardware etc) be used in some way to claim back anything? Or am I just being too hopeful and in reality since 100% of my work will be performed at the company I'm in effect just a regular employee except with no benefits like pension scheme etc.

Not quite sure what I mean really but just wondered if there was any way to reduce my tax bill or reclaim anything with respect to being a 'fixed term freelancer'

fengirl_2

If tax and NIC are being deducted at source, then you are not a freelancer, you are just an employee on a fixed term contract. You can only claim against tax for any expenses incurred wholly exclusively and necessarily in the performance of your duties. The first port of call would be to reclaim these costs from your employer and only if they will not reimburse you, do you claim through tax, but the rules are extremely tight.

BigBouncyBall

ok thanks, I'm pretty sure the employer does the whole PAYE thing, so to all intents and purposes the word freelancer is meaningless. I'm just an employee with less employment benefits than permanant contracted staff. I don't think trying to get back the cost of train tickets from them when my feet are barely under the table is a very good idea.

I cant really be bothered with any complex tax avoidance, I just wondered if I was missing anything blindly obvious.

Thanks for your advice.

PlutoinCapricorn

Your job terms and description seem a little irregular: if you have to work the same hours in the same place each day doing whatever work they give you, then you sound like an employee. Deducting income tax and NI at source is right for employees, and you should be getting most of the associated benefits. Will you be getting holiday and sick pay? If you are an employee, there is little scope for claming expenses: travel to and from work is not permitted.

Real freelancers can negotiate and work more flexibly: their rates are high to cover times when there is no work. Freelancers invoice their clients.

BigBouncyBall

yeh ive established now that the term freelancer is a bit of a misnomer.

thanks - i dont think i can claim anything obvious at the moment. cheers.