Freelancer with only one client?

Hannahlovesfoxy

I am currently employed through a temping agency by a local authority. They have recently offered me a pay rise - there is a total budget of £27k. If I stay with the agency their cut will have to come out of this figure. My boss has suggested I consider becoming a freelancer as then I will not only get the full amount, I will also get associated tax benefits.

I am very keen to do this as the extra money I will earn will pay for a course I want to do. Without it I cannot afford the course.

The contract would be for 1 year but on a 3 month rolling basis - this is the only way they can get it through procurement. There is absolutely no chance they can employ me properly so please don't suggest that.and I agree it is definitely not ideal ( ill probs start job hunting straight away!)

I've done some research and decided to set myself up as a sole trader as this is the easiest way. What I want to know is, is there anything I don't know about but should. I've heard the tax man doesn't like a freelancer with only one client but I haven't read anything to suggest its not allowed? Is there any other red tape I should be aware of?

Thanks in advance!

closed

did you forget your other threads on the same subject

the contract with the agency may inhibit the option

Hannahlovesfoxy

Hiya the agency shouldn't be a problem because I have out stayed my original contact with them. Apparently I just need to take a week off in between jobs. Thanks.

Suarez

HMRC will class you as an employer.

earthstorm

Suarez wrote: »

HMRC will class you as an employer.

how?

a freelancer is just a self employed person that is free to carry out work for many people.

HMRC can class him as an employee of the local authority if they are his only client.

OP, what is you line of work, as freelancing is usually associated with designers of some kind (graphic/web etc.). otherwise you are just a self employed sub contractor.

CKhalvashi

The only real way to distinguish yourself as a non-employee would be through a Ltd company (and assuming £25k profit, there would be a decent tax benefit), but at the least, you would need a website designed to win work, and possibly profiles on the freelance sites.

This is a bit of a dodgy area, and I'm not willing to advise any further. My advice, is to speak with an accountant, who is qualified and paid to give you advice that I'm not, and therefore both my and the sites liability is limited to what you're paying us.

CK

earthstorm

Yes speak to an accountant and even speak to HMRC as like CK i am not qualified in this area to advice further.

Suarez

earthstorm wrote: »

how?

a freelancer is just a self employed person that is free to carry out work for many people.

HMRC can class him as an employee of the local authority if they are his only client.

OP, what is you line of work, as freelancing is usually associated with designers of some kind (graphic/web etc.). otherwise you are just a self employed sub contractor.

1 job for 1 employer for a duration of 1 year....

Suarez

http://www.hmrc.gov.uk/employment-status/#1

colino

You seem to be limiting the OP by maintaining the employee mentality that no one could possibly be seeking other clients, work or business if they do 35-40 hours a week for any single client. My billing hours frequently exceed the total number of hours in a calendar week. (Some Public Sector business I do they prescribe tasks with the hours their staff would take to do them and you have to account on their CRM system the same amount!)

Suarez

colino wrote: »

You seem to be limiting the OP by maintaining the employee mentality that no one could possibly be seeking other clients, work or business if they do 35-40 hours a week for any single client.

Hold your horses. It's not ME..It's HMRC.