How do I set up as a Freelancer?

[CassieAuLait]

Hi all,
Well, I am being made redundant...thanks, Brexit, C19 etc etc.

However, I have been offered a contract to undertake some work as a consultant. Not a massive amount of money, but it will help tide me over during the coming year as I doubt I will find another f/t job in my field and at my age.

What do I need to do?
I gather I need to be able to present a UTR with my invoice, and will need to do self -assessment at the end of the tax year.

Is that it?
I won't be employing anyone else.
I do not need any more credits to get full state pension.

How do I get a UTR?

Thank you. (I am not as hopelessly uninformed in the field I will be working freelance!)

If you register with hmrc for self assessment they will send you your UTR.

www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-not-self-employed

Re setting up as a freelancer there are different options, hmrc also provide advice:

www.gov.uk/working-for-yourself

Im also considering this

My current role working from home with my current employer is not working out

But not sure if I should make the jump

X

Late to the party on this one but I am a freelancer and I have never been asked for a unique tax reference on an invoice! That's your number which you use to log in and complete your tax return. Clients don't need it and you shouldn't be sharing it with them, imho.

You register with HMRC as self-employed, and that's it. They'll send you reminders to compelte a tax return. Keep records of expenses and earnings, this will differ for anything but my freelancing doesn't involve me spending money, so my earnings and profit are the same figure. I just use excel to keep track of earnings, Slickpie for invoicing and as all money comes in via either PayPal or bank transfer there's a digital trail too.

No need to make things more complex than they need to be!

Please also consider whether you need to register for VAT.

Before signing up to do the freelancing, check what their requirements are, i.e. do they require their freelancers to have professional indemnity (and other) insurances? Do they require freelancers to trade via their own limited companies (most do). What are their payment terms? Is the hourly rate enough to cover all your business costs (insurance, equipment, accountancy, travel, training, etc). Sadly a lot of people sleep-walk into freelancing/self employment without doing the necessary due diligence.

Regarding the UTR, many organisations need proof of this so they can set you up as a supplier. There are strict IR35 rules that employers have to follow for tax purposes - www.gov.uk/topic/business-tax/ir35

Did you get sorted OP?