Freelancer - inland revenue issue?

Question

I started working for few advertisement companies creating illustrations for them , i have to send them invoice, but i haven't registered my service yet. What should i do to be ok with inland revenue :)))??? What is the amount i can make without tax?

Answer 1

About £4500 I think, get your books in order, make sure you know how much tax you owe/need to pay.  Keep a log of the invoice amounts, maybe create a spreadsheet to help you

Answer 2

you can start working and charging people without registering as self employed for up to 3 months.

Also, you don't charge VAT unless your annual revenue (takings) go over £60,000.

Keep a track of everything you earn though so you can pay income tax on it later.

Check out the inland revenue website for the details.

Answer 3

As already stated you get 3 months to officially register as self employed (register using form CWF1).

The form also registers you for class 2 national insurance contributions which go towards future state benefits. the current rate of class 2 is £2.30 per week.  If your profits from self employment are less than the exception threshold (£4825 in 2008/09), you can elect not to pay the contributions.

If you don't register within 3 months there is an automatic £100 penalty for late notification.  If you claim exception from the class 2 contributions due to low profits they cannot charge you the penalty.

Answer 4

You should register with HMRC within 3 months of starting to be self employed. There is some info here http://www.hmrc.gov.uk/selfemployed/iwtr...

The personal allowance for this current year is 5435 but will be increased to 6035 in September. So anything over 6035 will be taxed.