Re: FN-FORUM: Contracts and business plans

date posted 20th May 2007 14:30

James Herrington wrote:

> 1. What is the best way to approach this, as a freelancer or as a company.
> My dad already has his own company (first4quality - hes a quality
> consultant) and has said that it would be possible to work under this
> company name (maybe something like first4quality webdesign??)
> What would be the advantages and disadvantages to each approach?
>

Chill out. that sounds like a business studies exam question. If you do
work and get paid for it the simplest answer is to be 'self employed'.
Accounts can be as simple as a spreadsheet with income and outgoings.
You should have your own tax allowance so you can earn up to approx
£5000 per year before you need to worry about paying tax.

You should officially tell your tax office that you are starting self
employment, however in your case I would expect that you would be
unlikely to earn that much. It is a little known fact that if you know
that you would not be liable for tax it is not necessary to contact the
revenue to tell them that.
(however this is not something I would advise if your turnover exceeds
a couple of thousand.)

In general I have always found the tax office to be very understanding
to start-ups, they are not usually very interested in hounding people
who obviously will not be liable for tax.
If I were you I would talk to your Dad about this, as I am not
completely sure of the rules, but I think that they are the same for
everyone over 16.
Register something like JamesHerringtom.co.uk and put up a portfolio
site. You can then trade under your own name.


> 2. Where can i download a simple contract? How do i need to protect myself?
Get something in writing on real paper that you agree with your client.
It should describe what you will do and when and what and when you will
be paid. Keep a copy.

>
> 3. Is there any good cheap software for windows like Billings2.5 on Mac for
> creating invoices etc? Also how would i deal with VAT as either a freelancer
> or as a company?

Unless your turnover is greater than approx £50K you do not need to
register for VAT. This means that if you are working for someone that is
VAT registered they cannot reclaim the VAT on any VAT able goods or
services that you re-sell to them. So it shouldn't be a problem if you
are simply selling your time (in effect).

>
> I'm sure there are many things i have missed off here that i need to
> consider so if you have any other information that you think is relevant
> please feel free to include that...

Best advice - take it slowly, choose your projects carefully, don't take
on too much at a time.

REMEMBER to have fun!

Best of luck
Carrie