Self employment/Freelance

Discussion in 'Jobs (Discussion)' started by gibson097, Feb 3, 2006.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. Had some good offers that would have me working "free lance" or effectively self employed.

    Now Having been a good boy for 22 years and focused on the Green Machine....

    where do I start ? I mean has anyone any experience of this type of work. Finance, accounting, taxes and all that conkers is a mystery to me. Any pointers websites experiences someone could share ?
  2. I was self employed for five years running my own security company. Great for flexibility if you don't mid not eating. You work all day then again at night chasing new leads or paperwork. When you are successful enough to employ people you find a mountain of government red tape to fill you spare time and people who will let you down sooner or later. Don't forget sick pay, maternity leave, pension provision etc. etc.

    If you want to be self employed don't do a job that requires renewing you customer base but don't put more than 30% of your business with one source. Above all be ready to work very very hard particularly when you start
  3. Start collecting receipts NOW

    I pimp myself out to the highest bidder, or in lean times whoever has contracts, My accountant decided I should have a ltd company for tax reasons and set me up, hardest part is thinking of a name for said company.
    Apparently up to a certain financial level(55 grand off the top of my head) its quite tax efficient due to some loop holes fark knows what. Its relatively simple to administrate

    pay yourself minimal taxable sum per month, 300 odd quid and take the vast majority away in "Directors dividends' tax free.

    Not sure whether its still that simple. I'm sh_t with figures, off to see the accountant AKA headmistress shortly to discuss

    It was helpful in my first year out the mob as a lot of my purchases (lap tops, hardware, clothing, travel, petrol, christmas piss up.......list is endless) could be put against my tax

    As I've said, not even vaguely knowledgable about it but I paid less tax in my first year "trading" than I did in my last three months serving and I was on over twice the wack.

    best best get a sympathetic accountant, mine knows I'm a maths biff with the organisation skills and admin of a week 1 Sandhurst cadet!! She gives me plenty of warning about looming issues and gets me in the office to walk through my spreadsheet drills!!

    Perhaps there are accountant types on arrse who will explain further
    Fairly in the dark myself but yet to do a lester piggot

  4. Thanks Gimp, having asked around it seems that your route could be the wayahead. Bring on the big cigars and flashy car.

    (well maybe not)
  5. Whatever you do, join the Federation of Small Businesses. They provide oodles of legal cover, plenty of advice and a fair few contacts. Well worth the £100 per year.
  6. Ord_Sgt

    Ord_Sgt RIP

    IR35 has curtailled a lot of the benefits of working freelance under your own company in the UK. If you want some specific advice you could do a lot worse than they provide some best tax solutions depending on your circumstances. They'll take care of everything all you have to do is get them a signed timesheet and they will take care of the rest. Full of chicks too :D
  7. Good afternoon :) Since going self employed I have taken on a contract whereby customers pay monthly.
    Problem is we have to wait for our payments by cheques, til the end of each month, effectively offering them credit terms.
    And cheques of course; take yonks to clear.
    This obviously is not ideal, and whenever cheques are late or "lost" we run in to cashflow problems. Questions is whether
    we should bind our customers to paying by Bank transfer each month and if we can actually change our payment terms
    easily from cheque to Bank transfer, say, by giving four weeks notice and without legitimate objections from our customers?

    Many thanks for any help :)
  8. Yep, been doing it since I left in 1990. Made a decent living too and travelled far more than I ever did in the army - also got shot at more than I did in the army, in Somalia and in Mozambique. And it wasn't a cold wet night on either occasion. Having a limited company can save you money but only if you are earning enough to pay book keepers and accountants fees (which are tax deductible). Don't even attempt to do your own accounting unless you are an accountant. A decent book keeper will cost around 100 quid a month and will do all of your tax, VAT (if registered). The auditor (if you are a Ltd Co.) will set you back about a grand a year. It should be money well spent. VAT is interesting and in my case the VAT man decided that I am an agricultural related export company (?) and can therefore claim back VAT on all my expenses in Europe, whilst never invoicing anyone in UK and not charging VAT on services outside of UK. However since the last (horrible) government, if you eg let part of your house out to your company as an office, or perhaps store stuff in your garage for your company, there are people like the fire brigade who can now demand entry and inspect the shelf that you rent yourself in your own house, for breaches of fire regulations. As some one stated previously the Federation of Small Businesses is well worth while joining - google is your friend. The best advice I can give you is to do a small business management course. I did one at London uni as my pre release course - well worth it.

    D_W It's simply a matter of getting your customers to agree to a change of payment terms. Sell it to them on the basis of going green and helping the environment by going paperless?
  9. What's your background in the Forces, Gibson? And how do you want to use it in Zivil Strasse?
  10. Being a bookkeeper to trade (did I say that out loud lol) what I suggest you do is put the new payment terms on your invoices and as you send them out, include a flyer that points out to your customer the change in terms, appreciate their co-operation etc. You can advise that any payments not received by the due date MAY incur a penalty and any follow up can incur costs for collection. Then once the payment date is reached, if they have not paid up make sure you start your credit control process. I am a stickler for this adhering to your terms, lets them know you mean business. The majority of customers will pay up on time.

    If you need any more advice / assistance then pm me.
  11. HMRC do a number of free 1 day training days for indiviuals who want to start thier own business, free advice on on tax returns, tax rules etc.

    They work you through a work book with examples of different aspects for example tax on company vehicles, tools, allowable expenses etc.

    The classes are normally run with up to 12 indiviuals and there is the oppourtunity for a bit of networking. (The HMRC staff who do the courses in Oxford/Milton Keynes area have a good sense of humour, they also provide free coffee and biscuits). (Of course you are then on their radar).

    Contact your local tax office for details.

    With reference to payment for work done etc for clients, if you have a cavilier attitude in being paid, chasing up outstanding payments etc then your clients will expliote this. HMRC will expect to be paid on time both for Taxes and National Insurance and do not care if you are owed K£££'s by clients.