Currently employed, but would like to do freelance work. A few questions need answers

stupot42

I'm considering do the same as the OP, but wondered if I need a business bank account, or if I can just use my standard account or open another new current account to use?

Any advice greatly appreciated.

pipscot

stupot42 wrote: »

I'm considering do the same as the OP, but wondered if I need a business bank account, or if I can just use my standard account or open another new current account to use?

Any advice greatly appreciated.

If you want to receive cheques payable to XYZ Business then you will need a business account. However you will definitely save money if you can operate from a personal account (this should be separate from your normal main current account so you can separate business expenditure and personal expenditure easily).

stupot42

I hadn't thought about it like that.... interesting and definitely worth considering.

property.advert

mizzbiz wrote: »

But if he's freelancing, his expenses to claim back VAT will be next to nothing but then he would have to charge VAT separately and thence look less competitive.

If you're doing normal freelance work and not looking to bring in a lot from it, avoid the VAT man altogether. Charge by the hour, pay VAT on your supplies as you would a consumer. Don't mention it on your invoices, for example.

See, if you go into VAT registration, say you charge £10 per hour to make it worth while. You will be selling more than you will be buying, hopefully, so to make £100 for ten hours work non-vat registered, you charge £100. To make £100 for ten hours work if you VAT register, you will have to charge £120, then administer this extra £20 through the quarterly return system (basically, it's you working for the VAT man for free to bring him in extra moolah).

If you're going self employed buying and selling stuff, then it's a different matter altogether. If you're doing drawings and selling them to people from your home PC - AVOID THE VAT MAN!

You need to learn about the flat rate VAT scheme.

steve1980

The 2 - 3 month period is not a set in stone date. You should register as soon as possible to avoid a fine

Horace

paddyrg wrote: »

...and you manage to get through ;-)

I know they have been a right pain lately, I tried all last week and all weekend and I lost the will to live:mad: never did get to speak to them but there are times when I have called them and they have been quite nice.