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new to freelancing - how do I invoice?

4 replies

LittleRedBook · 06/08/2009 17:40

I know this is a bit thick, but I'm only working a few hours for my old company as a freelance not employed. It's consultancy services.

Question is - What do I do about VAT? Account for it or just charge them the hourly rate I agreed and don't factor in VAT?

Am sole trader and not VAT registered, I won't have enough turnover or whatever to qualify.

Thanks!

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flowerybeanbag · 06/08/2009 17:50

If you are not registered for VAT you don't need to charge it. But you can register voluntarily even if you are not actually required to. I don't have enough turnover to have to register for VAT, but I am registered anyway. There is a flat rate scheme for small businesses that can mean it's financially beneficial to register. Ask your accountant if you've got one, or have a look on HMRC website.

MegBusset · 06/08/2009 17:52

If you're under the VAT threshold and do not wish to register for it then you don't need to charge it. So just invoice for your hourly rate.

Don't forget to state your payment terms - I always put 30 days although some clients tend to stretch this...

JustWannaSay · 06/08/2009 17:55

I'm a sole trader freelancer and I just charge the agreed hourly/daily rate - you only have to factor in VAT if your turnover is sometihng like £50-60k

LittleRedBook · 06/08/2009 21:38

Sorry to come back so late. many thanks for your replies, that sorts it out for me.

Thanks again!

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