Becoming a freelancer
Discussion
Sorry - I have done a search but couldn't see anything obvious. Google didn't offer too much in the way of help either.
My girlfriend is looking to possibly become a freelance translator/interpreter to help fund her Masters this year and I understand that there are various benefits and poteential pitfalls to this.
I have no real clue to it and wondered a few things.
1. Will she need an accountant?
2. Related to 1 - I assume she will become responsible for her own tax and NI etc?
3. Are there "umbrella" companies that will manage a freelancer's tax and NI etc etc for a fee? If so are they expensive and can anyone recommend any?
4. Is there any benefit to registering as a ltd. company? Is this easy?
As you can see we are really in the dark about this. As an alternative to answering all my questions can anyone point me in the direction of a good site that may be of further assistance?
Many Thanks
Phil
PS: Anyone need a good Spanish/French/Italian/Portuguese > English translator?
Edited because it looked as though I had been on the beers!
>>> Edited by Mannginger on Wednesday 15th September 19:35
My girlfriend is looking to possibly become a freelance translator/interpreter to help fund her Masters this year and I understand that there are various benefits and poteential pitfalls to this.
I have no real clue to it and wondered a few things.
1. Will she need an accountant?
2. Related to 1 - I assume she will become responsible for her own tax and NI etc?
3. Are there "umbrella" companies that will manage a freelancer's tax and NI etc etc for a fee? If so are they expensive and can anyone recommend any?
4. Is there any benefit to registering as a ltd. company? Is this easy?
As you can see we are really in the dark about this. As an alternative to answering all my questions can anyone point me in the direction of a good site that may be of further assistance?
Many Thanks
Phil
PS: Anyone need a good Spanish/French/Italian/Portuguese > English translator?
Edited because it looked as though I had been on the beers!
>>> Edited by Mannginger on Wednesday 15th September 19:35
An accountant is always useful 
A limited company is probably not really required in this case - unless she believes there is a business/financial risk involved because of the nature of what she does.
Operating as a sole trader/self employed is probably the correct route for her. Most individuals who consider themselves "free lance" will prepare their accounts and tax return on this basis.
If she does decide to go forward as Self Employed, she has three months from the date of commencement of her business to notify the Inland Revenue. Once she does this, she will be obliged to start paying Class 2 Self Employed National Insurance contributions - which are £2.05 per week.
After 6 April 2005, she will receive a 2004/05 Self Assessment tax return form for completion. This will have to be submitted to the Inland Revenue by 31 January 2006. Any tax liabilities due for 2004/05 will also be payable by the same date.
If you want more specific information about being Self Emplyed - drop me an e-mail.
>> Edited by Eric Mc on Wednesday 15th September 21:18
A limited company is probably not really required in this case - unless she believes there is a business/financial risk involved because of the nature of what she does.
Operating as a sole trader/self employed is probably the correct route for her. Most individuals who consider themselves "free lance" will prepare their accounts and tax return on this basis.
If she does decide to go forward as Self Employed, she has three months from the date of commencement of her business to notify the Inland Revenue. Once she does this, she will be obliged to start paying Class 2 Self Employed National Insurance contributions - which are £2.05 per week.
After 6 April 2005, she will receive a 2004/05 Self Assessment tax return form for completion. This will have to be submitted to the Inland Revenue by 31 January 2006. Any tax liabilities due for 2004/05 will also be payable by the same date.
If you want more specific information about being Self Emplyed - drop me an e-mail.
>> Edited by Eric Mc on Wednesday 15th September 21:18
Mannginger said:
1. Will she need an accountant?
2. Related to 1 - I assume she will become responsible for her own tax and NI etc?
3. Are there "umbrella" companies that will manage a freelancer's tax and NI etc etc for a fee? If so are they expensive and can anyone recommend any?
4. Is there any benefit to registering as a ltd. company? Is this easy?
1) Unless she wants to learn all about tax as well as translating, yes. Or a book-keeper, which is a less-qualified and therefore cheaper version but OK for a sole trader.
2) Yep.
3) Possibly but why pay a middle man?
4) In this case almost certainly no. Just adds complexity, expense and responsibility.
As she will be working on a fee (ie time only) basis and not buying stuff in for resale, VAT registration is unlikely to be beneficial.
All IMHO of course
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