Freelancing Part Time
Many freelancers opt to ‘test the water’ by working in their spare time to start with, whilst also remaining in full time employment. This gives them the option to see if a freelancing business is viable, before giving up the day job. In fact it is often an excellent way to start!
You do not have to tell your employer you are freelancing part time if you do not wish to although it is sometimes advisable in case of any potential conflict or clauses in your contract.
If you choose to freelance part time then the simplest route is often to become a sole trader. All you have to do to register is to let HMRC know by filling in a CWF1 form within 3 months of you setting up.
After the end of the tax year, which is 5th April, you then have to complete a Personal Tax Return which declares your business profit – which is, in effect, your income or ‘payment’ for the year. This is the figure you will be taxed on and you are responsible for your own Self Assessment Tax and Class 4 National Insurance contributions.
Using an accountant will ensure that you do not put yourself at risk to the various HMRC penalties and end up having to pay interest that is charged for late registration, late submission of tax returns and late payments of tax. Easy Accountancy offers freelancers who choose to operate as a sole trader an all-inclusive, fixed-fee accountancy package of £60 plus VAT per month. This includes unlimited access to your very own accountant via telephone or email throughout the year for help and advice.
For more advice on how Easy Accountancy can help you and business, or to find out more about our fixed fee packages, please call 0500 234 111 / 01442 275767 or email email@example.com.
If you are considering freelancing on the side of your full time job then the following pages may also be helpful:
- Benefits of Freelancing - the benefits to you as a freelancer and to your potential clients
- Sole Trader or Limited? - which route is right for you?
- Setting up as a Sole Trader Freelancer - what you need to consider when setting up as a freelancer
- VAT and NI - how do VAT and NI affect you as a freelancer?
- Freelancer Insurances - what insurances do you need as a freelancer?
- Freelancer Take Home Pay Calculator - how much more could you earn by going freelancing?
- Finding Freelance Work - how to find your freelance roles
- Freelancer FAQ’s - all your questions answered