Hello, I'm new to the world of freelancing

[thewalrus]

Hello everyone,

Starting my first freelance job next week! (Also my first paid job full stop after several years off with small children.) I have cleared out my new office (though it currently still also houses the ironing pile, which I'm thinking might be a bit dispiriting) and planning to get in touch with HMRC next week. Any words of advice or things I need to know - feeling very excited and nervous at the thought of returning to work.

Get a business bank account
Get a system in place for recording expenses (I use a lever arch file with scrap paper; all receipts are stapled in there keeping them safe and in date order)
Design up an invoice
Get a back up drive and set it to automatically back up every day
Get a decent printer
Ban yourself from Mumsnet during working hours

Wow, thanks for the quick and useful advice - had thought of bank account but hadn't quite made it on to my to-do list. It has now!
Suspect the last will be quite hard to follow. Self-discipline is not exactly my middle name!

Keep on top of your invoicing - a job doesn't count till you have the money in your actual hand.

Be chirpy at all times. No-one wants to pick up the phone to a grumpy freelancer like me they get enough of that in their own office.

Get a pomodoro app for your phone if you are tempted to MN during working hours like me

Talk to an accountant early on to get an idea about allowable expenses etc - it just means you don't approach your first tax return shitting actual bricks again like me

I don't think you need a business bank account by the way, they usually cost money too. A separate account is useful.

Thanks Wilson - sounds like sound advice! All going well so far work wise, but it is only day 2...

Re bank account - I would open a separate account (makes life a lot easier for us accountants) but don't tell the bank you want a business account because they will charge you. Just ask them if you can open a separate account for bills or something like that.

Thanks marion!

Put a late payment clause into all your contracts eg payment in full within 30 days or additional late payment fees of 3% / whatever for every additional day.

I would rarely actually re-invoice for these but it does mean you are slightly more likely to get paid on time.

Being paid a month after you do the work is pretty good & unfortunately rare - diary in time to chase invoices especially if you are in the arts!

Firstly, congratulations! It's a great feeling having the freedom to work for yourself and a great achievement as well.
I have not opened a seperate bank account purley because the interest rates are much better in current accounts at the moment. You will have tax and NI deductions sitting in your account until you have to pay them to HMRC for a long time. You might as well try and get a good interest rate on them while they do. However, you must be aware that this will have to be paid out. If you are worried you might not do this then put it in a seperate account each month. This is really important as a friend of my who is an accountant says she commonly sees people taking out loans to pay their tax as they just have not kept track of this and spent the money! This is what I do:

1. Have an excel schedule detailing all expenses with a column for a number and then the number is written on the receipt which is filed in plastic wallet in a4 folder.
2. Have another excel schedule detailing each payment I recieved and how much of this will be tax and NI deductions. This should then go in a seperare account or just so that you are aware how much of the money in your account is not yours to spend.
3. I also have an extra column in the above schedule to deduct expenses. This is for my own reference (rather than tax purposes) just so I know how much profit I am actually making from each job after deducting tax, NI and work expenses. It is easy to loose track.

You will work things out as you go along but trying to be organised from the start as you clearly are will stand you in good stead.

Good luck!

OP, firstly congratulations and well done:) I am an accountant. Please PM me if you need any accounting type help!

All the best xxx

Thanks for all the tips and advice. Reading up on here has been really useful!