Freelance on retainer

jimrobbo2

I work part time 19 hours a week for a company as a freelancer. I usually work in the office with them but I have obviously worked at home a lot more this year. How much would be a reasonable amount airing on the side of caution of worming 50% of the time at home?

Dazed_and_C0nfused

jimrobbo2 said:

I work part time 19 hours a week for a company as a freelancer. I usually work in the office with them but I have obviously worked at home a lot more this year. How much would be a reasonable amount airing on the side of caution of worming 50% of the time at home?

How much what would be reasonable??

jimrobbo2

Claiming work from home tax relief on 8.5 hours a week as part of the self assessment. I'm thinking to leave it and not bother but if I can get a 100 quid or so back it might be worth the hassle this year?

Dazed_and_C0nfused

This might help

https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home

Grumpy_chap

jimrobbo2 said:

I work part time 19 hours a week for a company as a freelancer. I usually work in the office with them but I have obviously worked at home a lot more this year. How much would be a reasonable amount airing on the side of caution of worming 50% of the time at home?

That post does not obviously match the thread title - perhaps some explanation would assist in forumites possibly assisting the answer.

As I understand the post, you normally work 19 hours per week on a free-lance basis for company X.
You are still working 19 hours per week, but at a changed location (which has presumably been the case for many months by now).

A "retainer" (as I understand it) would be paid to ensure you remain available to work for company X but providing some level of reduced income to cover periods when there is no work to be done for company X.  This is not a common scenario.  Can you clarify exactly how and when the "retainer" is applied?

jimrobbo2

Basically it's an agreement. Retainer is basically what it is as far as I am aware in business terms, but then again I clearly aren't that with, hence why asking for help on what to suggest. I suppose I am confused and need more help, hence me digressing. I have worked most my life in employment and noticed on the self assessment I can claim to cut my tax bill. This is why I'm asking as it says I can. So I feel like now I should as it could save me money. So in regards to the 19 hours and 50% of that at home, what can I claim as a % without a breakdown?

Grumpy_chap

jimrobbo2 said:

Basically it's an agreement. Retainer is basically what it is as far as I am aware in business terms, but then again I clearly aren't that with, hence why asking for help on what to suggest. I suppose I am confused and need more help, hence me digressing. I have worked most my life in employment and noticed on the self assessment I can claim to cut my tax bill. This is why I'm asking as it says I can. So I feel like now I should as it could save me money. So in regards to the 19 hours and 50% of that at home, what can I claim as a % without a breakdown?

So, this is not a question of what you can claim from the company that you do work for an a freelance basis, but you are asking what you can claim as expenses against your tax return for WFH?

The simples answer to that question would be to claim the tax relief against £6 per week:
https://www.gov.uk/tax-relief-for-employees/working-at-home

MalMonroe

Hi,

My daughter worked for 16 hours a week as a freelancer for a company for two years but worked from home. The company called it 'being on a retainer' although no amount of retainer was actually paid. It's just a term they used, as you have.

She made a note of the gas, electric, internet, phone, equipment (including desk and chair) used throughout the year for the hours she worked in the rooms she used and then when it came to completing annual tax returns, would put the relevant amounts in the relevant place on the form. I'm assuming that you earn enough to have to complete tax returns. You have to ensure that you keep concise and accurate records too, just in case you have to provide evidence of any claims. It has to be a specific amount, worked out to reflect your own circumstances with exact dates and times you were working at home. I'm not saying it cannot be done and it should be done, since you have obviously been using energy and desk and chair at home. It just may take a while.

Info in this link - https://www.gov.uk/expenses-if-youre-self-employed - may be more relevant as you are not an employee, you are self-employed.

There's also this -

https://www.gov.uk/income-tax-reliefs

You could also try googling something like 'freelancers groups' or 'help for self employed' because that's how my daughter found out a lot of useful stuff to help her be self-employed. And made a couple of internet friends into the bargain.

[PS Not being rude but it's 'erring' on the side of caution, not 'airing'.] 

Good luck! 

jimrobbo2

Grumpy_chap said:

jimrobbo2 said:

Basically it's an agreement. Retainer is basically what it is as far as I am aware in business terms, but then again I clearly aren't that with, hence why asking for help on what to suggest. I suppose I am confused and need more help, hence me digressing. I have worked most my life in employment and noticed on the self assessment I can claim to cut my tax bill. This is why I'm asking as it says I can. So I feel like now I should as it could save me money. So in regards to the 19 hours and 50% of that at home, what can I claim as a % without a breakdown?

So, this is not a question of what you can claim from the company that you do work for an a freelance basis, but you are asking what you can claim as expenses against your tax return for WFH?

The simples answer to that question would be to claim the tax relief against £6 per week:

Brilliant, I think that makes the most sense. £6 per week would seem reasonable and i was thinking around the £150 mark would be perfectly fine but didn't know if it would be too much. going off the £6 then it would be 'erring' on the side of caution,. thank you!

jimrobbo2

MalMonroe said:

Hi,

My daughter worked for 16 hours a week as a freelancer for a company for two years but worked from home. The company called it 'being on a retainer' although no amount of retainer was actually paid. It's just a term they used, as you have.

She made a note of the gas, electric, internet, phone, equipment (including desk and chair) used throughout the year for the hours she worked in the rooms she used and then when it came to completing annual tax returns, would put the relevant amounts in the relevant place on the form. I'm assuming that you earn enough to have to complete tax returns. You have to ensure that you keep concise and accurate records too, just in case you have to provide evidence of any claims. It has to be a specific amount, worked out to reflect your own circumstances with exact dates and times you were working at home. I'm not saying it cannot be done and it should be done, since you have obviously been using energy and desk and chair at home. It just may take a while.


You could also try googling something like 'freelancers groups' or 'help for self employed' because that's how my daughter found out a lot of useful stuff to help her be self-employed. And made a couple of internet friends into the bargain.

[PS Not being rude but it's 'erring' on the side of caution, not 'airing'.] 

Good luck! 

Firstly, I am gutted I got that wrong in a public forum but at least I know now, genuinely thankful! 

I am terrible at keeping records but think I need to move forward if it is going to save me money. The situation you explain is exactly what I am looking for. I like the £6 a week version as it keeps it simple for me also, but your way sounds like could save more. I have enough spreadsheets as it is, another one will probably suffice and at least I can do it knowing I am being truthful which is a big thing. 

Thank you guys

Grumpy_chap

The process is explained more at the link below. 

The actual value is:
- £1.20 a week for a basic 20% rate taxpayer (£62.40 a year)
- £2.40 a week for a higher 40% rate taxpayer (£124.80 a year)
- £2.70 a week for a top 45% rate taxpayer (£140.40 a year)

https://blog.moneysavingexpert.com/2020/04/martin-lewis--working-from-home-due-to-coronavirus--claim-p6-wk-/?_ga=2.220517144.1012465799.1642055803-1869298625.1642055803