Starting out as a new designer?

[blueocto]

Im surprised this hasnt been mentioned already on the forum (I did check heh).

If you are over 16 (of course) and offering services for payment, by law you need to register as Self Employed with HM Revenue and Customs.
If you do not register within 3 months, you can be charged fines/penalties for late registration.

The Starting up in Business section of HMRC's web site provides full details of how to register and provides details of the main tax and National Insurance issues involved in running a business.

In summary, you need to keep all records relating to your business; more information regarding this can be found at Set up a basic record-keeping system | Business Link.
It is vital you keep records for upto at least 6 years by law.

When you register as self-employed you will be required to pay National Insurance (Class 2) like you do in an employed job (Class 1). If your expected earnings for the tax year (April to April) are less than the stated HMRC figure, you can apply to not pay contributions on the grounds of having small earnings.
More info can be found here HM Revenue & Customs: National Insurance
and here http://www.hmrc.gov.uk/forms/cf10.pdf

You will also be required to complete a Self Assessment Tax Return. Note : this is NOT proof of self-employment, anyone can complete a Tax Return.
In the year you register, you will be sent a form automatically from HMRC to complete and return.
For example, you register Sept 2007, recieve a form April 2008, return it to HMRC by Sept 2008 they will calculate it for you, billed for tax in 2009.

Anymore information I will be happy to help, as I've served as a civil servant for over 5 years and continue to do so. I am trained in Self Employment Services, NI Deficiencies, Pension Credit, Child Benefit, Tax Credits and some Home Responsibilities Protection.

Thankyou come again

[philjohns]

Is this true? I havent read any links yet as Im away but would appreciate some other views...

Im 16 and charge for my freelance design work/skills but always thought I only needed to register if earning over a certain amount a year?

[blueocto]

No you have to register, even if you are working and end up making a loss in the tax year. You have to declare that to HMRC, else if they were to investigate for whatever ever reason, you would be in deep, well, horse poop lol

[Zaoris]

May I ask Philip...what's your freelancing standing as?
It's interesting to hear a 16 years old is offering that tbh

[philjohns]

May I ask Philip...what's your freelancing standing as?

elaborate a bit and I'll answer ;)

[blueocto]

I think he is asking, how is it going, as it is not often you see someone so young self-employed (unless in the Construction Trade lol)

[philjohns]

O right...well, pretty well if you consider Im 16!!

Ive only been doing it for about 5 months but Ive had a fair few jobs, and have had a few people get in touch wanting a website built but then opt out due to insufficient funds which is fair enough - I'de rather that than not get paid for it.

I also do design and photography work for a few companies who are actually world wide - not sure if they would appreciate it if I posted about it on the forum but get in touch and I'll send you a pm if your really interested.

[Zaoris]

Yep, Caroline was right, that's what I was asking about.
Well, it's interesting to hear from a 16 years old...you already know things we didn't think about at your age :)
Good luck

[philjohns]

Thanks!

[blueocto]

Your doing better than me by the sounds of it! lol