Going Freelance

louloulouisa

Hi Everyone

I have recently been made redundant, and am thinking about going freelance (I am a graphic & web designer)

I have 3 children, so its great working from home.

I'm just wondering how that would work with tax credits? I was working 16 hours before, which fits in well with my children, and would like to carry on the same type of hours. (need to work 16 hrs anyway so I can get help with childcare, to enable me to work in the first place!)

But how does it work? what would happen if I didn't earn much money on a certain week, or didn't have enough work to be entitled to help with childcare?

Do I have to register as a company? or anything in order to qualify, or can I just 'be me'!

There is going to be a lot of work I need to do, that I won't get paid for, backing up files etc... can I include things like that to make up my hours?

Thanks in advance :beer:

Lou x

louloulouisa

Hope no one minds me bumping this post up, just in case it got missed

:beer:

Lou x

bluecowonthebus

Hi
I used to work freelance as a sub-editor and claimed tax credits - my son was in nursery at the time.

First you would need to register as self-employed with the tax office (HMRC). They can give you advice about claiming expenses at home, keeping records of invoices, paying NI and doing self-assessment for tax. I was a sole trader and just registered using my name and my home address. You can set up a business but that is a different ball game when it comes to tax and administration. Your local tax office can advise you, maybe Business Link as well.

With tax credits, it is confusing but I used to try to average out working hours and my earnings over a month. It helps if you have one or two regular clients and have an idea about what income you might get in. I would suggest talking to the tax credits office about it but they are a nightmare to get hold of. There probably are some other sources of advice - I will have a look and get back to you.

bluecowonthebus

HMRC has some basic info on its website
http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/index.htm

louloulouisa

Hi 'bluecowonthebus'

Thank you sooooo much for that help :beer:
Lou x

hope_for_now

At the JC there is an advisor for people thinking of becoming self employed probably worth a visit.

louloulouisa

Thanks 'hope for now' I'll make an appointment :beer: