Where to start with freelancing?

[compendiousme]

I am currently employed. It's looking possible that it may come to an end quite soon so I am thinking about preemptively setting myself up.
My current employer is a huge institution (20,000 staff across many departments) and my boss has already said he would like me to continue to do irregular jobs for him as a freelancer. I would also open this up to other people elsewhere within the institution and possibly outside.
Where do I start? How would it work? I have never been freelance. I'm a graphic designer and multimedia / video producer, if that matters.
I was thinking it would build myself a website with my portfolio, testimonials, etc. Would I just do the work and invoice? How does tax work? Am I supposed to be a 'company'? What about expenses (software at home etc)? Sorry! Ten years professional experience and I'm suddenly feeling like a total beginner!

Hello

Setting up as self-employed is fairly straightforward - see this Gov site - www.gov.uk/working-for-yourself/overview. You don't have to be a company, it is less complicated (in terms of accounts, documents, procedures) to be SE but the risk isn't limited. I personally stick with SE and have insurance.

Tax - I save it up as I go. I put 25% aside to allow for a small pension payment. Depending on when your year end is, you pay the January after. However, an accounts person will explain it more accurately.

I personally decided to use an accountant as I find money stuff difficult. I keep my records and she charges £300 to produce accounts and do my annual return. However, I know lots of ppl that do their own.

I would start (before the above) with the money. How much do you need to earn each month? It could be worth thinking about going part-time (or getting a new pt job if your current job is going to finish) and building up the freelance work alongside some regular income? It will take a while to build up to replacing a salary.

I would be a little wary of relying on income from your current work. Once out of there you might find they change their mind etc. Unless you could get a contract??

I read a book when I first started which suggested that you need to plan for working on billable work for 1/3 of your working hours, admin for another 1/3 and the last third on business development/pitching.

Re marketing. Get connecting on LinkedIn if you aren't already. A website sounds good and a good presence on social media. I would also think about your audience - I'd go for similar organisations to where you have gained experience. It is much easier to sell yourself to organisations that are similar to where you have worked.

There are freelance sites where you can bid for work www.peopleperhour.com & www.elance.com but they tend to be v poorly paid. There are a few threads on here about it.

Finally, I really like Enterprise Nation - they have a free online start up course - www.enterprisenation.com/blog/posts/free-12-week-startup-course-sent-to-your-inbox

HTH

Good luck!

Set up a limited company, an accountant did it for me but you can probably do it yourself.
Design a website, start advertising and networking to get the business.
Decide your daily/hourly rate and when you get a job send the client a contract to show what you will be doing and what it will cost ( remember to allow an extra 25% for tax etc when working out your fees) and payment terms.
When the job is finished or each month, whatever you have agreed then send an invoice, it's easy to create these yourself.
Other than invoicing and contracts my accountant does everything else so can't help much with that side I'm afraid.
The main issues you will probably face are finding the business and time management to be honest.
It's worth it though

It's more tax efficient to be a company and take dividends (although to an extent this could be offset against accountant's fees if you don't earn a great deal).

If you do go down the Limited company route be careful of IR35 (tax rule about 'disguised employment') particularly as you will be working for your old employer. You would be best to take advice on this when setting up your company or at least make sure you understand it.

Actually the IR35 risk is far greater if you're self employed than if you're set up as a company.

The most important aspect of freelancing is knowing how much to charge and charging enough - don't under-value yourself. It is tempting at first to quote a low rate to get the work (and there is nothing wrong with that initially) but pretty soon you want to be charging what you are worth (10 years expereince).

Agree with setting up Limited Company - not difficult and can be more cost effective but, more importantly, it makes you look more professional to prospective clients.