Working from home - what do I need to know???

[SilverLining]

My boss has just accepted my resignation after my maternity leave (long commute, child care issues etc) which I reluctantly had to give as I love my job BUT he has approached me about doing some event management from home. I'm v keen to do something to keep my sanity but what to I need to know??? Its medical conferences and meetings mainly so I guess I would need a different phone line, email address, fax etc But what do I need to do about getting paid, tax etc. My other concern is that DD1 will be at school full time from Sept and DD2 is currently at nursery 1.5 days a week but could be increased if necessary so I don't have 5 days a week free to work (and don't want either - I do quite enjoy being a SAHM)
Apologies for how ignorant I sound - its all new to me!!!
SL x

maybe your boss means that they will still employ you, but you'll work from home?
that means you won't have to worry about pay and taxes etc

thx Starlover but sadly no! He wants to employ me more on a contract type affair as the work will flucuate which will suit me but I don't think they (university) will keep me on payroll if some months I will be paid nothing and other months STACKS!

I feel like such a novice but trying to sound knowledgeable to him "well, I'll look into that and get back to you" - little did he know I meant come straight onto Mumsnet and ask some clever people I don't know!!

SLx

You will be self employed then I take it. You will have to register to pay class 3 (Ithink) national insurance payments as a sole trader. You would have to register with VAT people if you are likely to earn loads I think the threashold is over £45,000. Of course you will have to fill in a self assesmnent form and pay the Tax on your income. Keep a record of all your business related incomings and outgoings, so when you fill out your self assesment it is easy. I use a account book that is all set out for each week with boxes to fill in with all the different things.

You could make up simple invoices for however much you will be charging your old company for your work.

You need to ring up the inland revenue and get the pack for registering as self employed. They won't actually let you register until you've started work though, then you have three months to do it. They will set you up with paying Class 2 NI contributions as well (£2 a week). Then you just have to do agree how much you'll get paid and how often you'll invoice them. You have file your tax return each year (can do it online) in the summer and the Inland Revenue will work out the tax for you. I have found it quite useful to save 20% of each invoice in a separate savings account against my tax bill.

Umm, what else . . .

Do actually do the work, and not like me, spend half the time on mumsnet and then agonise over whether that is "chargeable time" or not!!

Hey thanks you two! It won't be over 45K - that I can say for sure!!! Looking at it more as a bit of handbag money and the odd weekend away!

So as I bill for a months work and set it out as number of hours etc do I need to add VAT on top - this was something old boss muttered.

Tell me - do I sound like the worst kind of woman ever - ie stupid, leaves all this stuff up to DH ..... don't answer that!!!

thx again SL x

And do actually fill in account book as you go along so that you are not trying to fgure out what jobs you did when and trying to find 2yr old receipts . Same goes for self assesment, don't leave it until the deadline and post it the day before praying it gets there in time.

(class 2 then}

V funny - was thinking of how I can make MN a chargeable bit of work - research?? How about that coffee on my way back from the school run?? SLx

What about stationery, phone bills, misc expenses - do I add these all on to the invoice with appropriate receipts or am I better to charge a flat fee and take them out of that?

Sorry etc etc

SLx

I did a short course over 4 days at the small business place, it covered Tax, accounting, inssurance etc. Very helpful and they can give other advice about your specific work.

No, you definitely don't need to add VAT unless you are VAT registered and that would be if you earned over £45k as Skribble says.

I just set out my invoices with how many hours I've done x hourly rate, then add expenses on (phone, paper & envelopes, travel for meetings, stamps, copying etc) with a total at the bottom. Some accounts depts like you to have an invoice number too, and then I put "Payment due within 4 weeks" and my bank details in case they want to pay direct into the bank.

Sorry, cross posting here! It's better to charge for your actual expenses so then you don't get taxed on them - and remember to take copies of your reciepts if you have to send them in with your invoice.

I think they send you a list of the courses Skribble mentions once your register as self-employed, and they also send you a lovely big folder called "working for yourself" or something.

I really must stop pretending MN counts as work I have 2 things people have bought that I have to parcel up and send off today, shame I can't get paid for chatting on here. Selling on EBAy is about as close as it gets I suppose, still have to get up at 7am for the market on Sunday though.

thanks so much - v helpful! Will now roast a chicken and collect from school before going to nursery later ..... how much can I charge for all that??

Might start pretending on DH and see if I can get the hang of it!

Thanks again
SL x

No problem - good luck with the self-employment, it's definitely the way forward!