We believe the boom in freelancing is going nowhere. Why would it? There’s a growing market for freelancers across all manner of sectors and all over the world. Plus, you can work anywhere and at your own pace – #livingthedream
Which is all good and well, but it’s still a full-time job, so you need an accountant to get your self-assessment in on time and to make sure you’re getting the best financial advice about making the most of being a freewheeling freelancer.
How we help freelancers
Self-assessment tax return
Sole traders must provide HMRC with a self-assessment tax return each year – why not let us handle it for you?
Any questions you have – about tax, legal obligations, sole trader or limited company, business growth – come to us, we’ll keep it simple
There may come a time when you’ve outgrown sole-trader status, we’ll help you transition to a limited company
We’re there when you need us, or just if you have a query. We don’t ignore calls or emails. We love sharing our expertise
Many freelancers are sole traders, who need to provide a self-assessment tax return, due after April 5th each year, with the tax payment due by January 31st of the following year, while a ‘payments on account’ of roughly the same amount will need to be paid by July 31st. As far as the documents and records you’ll need to keep, you’re looking mainly at invoices and receipts, or incomings and outgoings, but we can advise you on the records you need to keep in detail and how best to do this. We’re available for any questions you may have, which is probably quite a few, tax can be complicated.
Sole trader is usual for a freelancer, working alone. But being a limited company can also benefit one man bands too, it depends on your business, your sector, your performance and growth forecast. In general, you’ll know when you’re growing out of being a sole trader, but we certainly will, it’s something we’ll advise on during a discovery call.
We can help you transition from sole trader to limited company. You may be expanding your workforce, we can help with this too. Perhaps you want greater visibility of you finances, in real-time, we can you set up with the right software. Basically, we can help, so don’t be shy in asking.
As usual, it depends. When your turnover passes a fixed amount then you need to register for VAT, maintain records and start charging your clients VAT. Some people charge VAT even if below the turnover threshold, believing it adds kudos to their business, making them seem bigger than they are. As with all tax, it’s a little involved, but we can go through whether it’s applicable to you at a discovery call, or advise you when we think it will benefit your company.
As a sole trader, there’s a fairly simple rule to follow – depending on your expected total yearly income and therefore tax bracket, set aside a percentage of your income, do this routinely (i.e. monthly or every time a payment hits your bank account). Put it in a savings account. This will the backbone of your tax obligation and prevent you from having to ‘save up’ just before the deadline.
Business costs are tax deductible. But what are they? Basically, any expenditure you can relate back to your business. You could include: stationery, IT equipment, premises rental, internet access, marketing, business phone bills, travel to customer premises - e.g. a train ticket, motor expenses relating to your business, food, utilities.