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I need to be legal (vat registered) to send an invoice (freelance work)?

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hi, im really happy as today i did my first bit of freelance work working on a website, i see this job advertised online, it was only a small job with a small fee however they want me to send them an invoice.

Currently im employed full-time, this job was an out the blue oppurtunity, im not self employed or have a limited company (yet)

Whats the best road for me to go down?

I do eventually want a ltd company but what is easiest for me to do now just to do some freelance work here and there?

Thanks :D :thumb: :flirt:

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    no you don't.

    You are acting as a sole trader, and don't need to be VAT registered unless you're charging a heck of a lot for the web site.

    you will need to fill out a self assesment tax return for the next 3 years though.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Hey Big Gay (love the name), so are you saying im doing nothing wrong, as long as i declare any work i get paid for on a tax return in the future?

    So when he asks for an invoice i can just send him my details, a description of the work and how to pay me?

    No it was only a small job on his exsiting website (£40)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    That's pretty much it. If you've got a word processor program, it may have an Invoice template, but they'll need the date of the invoice, your address, a description of the work, the price and it's a good idea to put payment terms on there.

    It's a good idea to phone the tax office now, but it shouldn't have any impact on your current employer, as they'll just carry on using PAYE.

    If you're thinking of becoming a company later, you can even start using the name you want (but not using any "magic" terms like limited, company, partners etc.) by putting a footer like "Betty Boo trading as Hot Web Mistress" - but make sure no one else is using it, because tht just causes confusion (and may lead to accusations of passing-off)
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