Freelancing - is it right for me?
- Ability to cope with uncertainty e.g sickness and holiday periods not allowed for
- Being self motivated
- Superior networking skills
- Self marketing skills
- Self Discipline
- money! how much?
- essential equipment - materials, tools, software
- add them all up and work out how much I need to earn
- simplest structure. No registration costs etc.
- Register as self employed with HMRC
- Personally liable for any debts
- All profits to you
- Also need to need to pay fixed rate class 2 and 4 national insurance contributions on profits
- Self assessment tax return
- VAT - if turnover over £64000 <--- i wish!
- need to keep a record of all transactions incoming and outgoing to satisfy inland revenue - materials, business costs
- Invoices and reciepts need to be kept
- date, reference, who, how much and what <-- keep organised!
- make sure all reciepts and transactions match spreadsheet - make spreadsheet to keep organised.
(see example below)
- Bank statements - need to keep for 5 years - evidence of payments.
HAVE A CONTRACT!!
A contract protects you if things go wrong. Essentials:
- Fees - what you are paid for? how much?
- How is the contract evaluated at the end of the project?
- Obligations of employer
- Copyright issues - who owns it?
- Expenses, payment and invoicing
- other considerations: legal, health and safety, illness, disputes, timescales, insurance
- contract details
- terms of service
- signed by both parties
- agents take % of fee - find you work
- AOI sell lists of editorial clients
- Online agency search. e.g Advocate Art
- websites - www.mediauk.com - offer lists of publications to pitch for
- www.londonfreelance.org - rates for freelancers
- Sales estimate
- Cost estimate
- Setting up costs
- Ongoing costs
- Direct costs
- Wholesale good bought
- Indirect costs
- Insurance, rent etc
here is an example of a good invoice:
good website to look at --> thedesigntrust