So I worked for a company for 7 years before having a baby. I’m going to do some freelance work for them instead of returning as an employee. I don’t want to do the job I used to do as it was too stressful.
I’m going to help them with some training and business development though on a consultant / self employed basis so I can set my own terms and it’s flexible for me (don’t need to work regular hours and can take as many holidays as I want etc) I’ll Most likely offer them a few hours 1 or 2 days a week.
They need help training new employees, focusing on customer service training, training on product knowledge, system training and also focusing on training new management.
I have no idea what to charge per hour any ideas ?
I know I need to register with hmrc as self Employed. Do I need to do anything else?
Has anyone else done this sort of thing and have any tips for me?
My aim will be to get more clients when my little ones are older
I know I need to register with hmrc as self Employed.
Have they agreed to take you on as a self employed sole trader? Most firms only engage contractors with either their own limited company or via an umbrella agency. Before you go too far, you need to check how they're willing to engage you. The risk is with the employer if they pay someone as a self employed sole trader who is really just an employee (as per HMRC's employment status indicator) - most employers won't take on that risk, hence why they engage through a limited company or umbrella.
I do this If you only have 1 client you are at risk from IR35 so get others ASAP ( might not save you but will help) You need to register with HMRC and set up a company. Many of our clients prefer dealing with a Ltd company. A good accountant should pay for themselves. You also need professional indemnity and possibly public liability insurance. Look at IPSE, they offer Insurance but also general advice. Membership is pretty reasonable. Rate depends where you are. I’m in Yorkshire and charge between £200 and £300 per day or part day plus reasonable expenses. As I said, this is what I do so happy to help if you have any other questions
Returning to work for a previous employer is high risk within IR35. You could seek other clients to work for too, but the fact remains that the work you do for your employer falls inside IR35. Typically you need to have either your own Limited Company which would usually be the most tax efficient, or you can work via an umbrella company which is a PAYE model. I work for a very well known contractor and freelancer accounting firm so if you need any advice you’re welcome to contact me.