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Part Time Freelancing Issues

Discussion in 'General Business Forum:' started by davewill, Oct 29, 2010.

  1. davewill

    davewill Senior Member

    Hi guys,
    Some of you will know I work full time as a designer in an agency in Liverpool but I also freelance in my spare time. I had 1 week during February of this year when I was unemployed so I registered self-employed so my freelancing was all legit.

    However, I didnt ever notify the HMRC that I had started working full time again so now Ive just got a letter saying I have to pay national insurance contributions for the last few months. Surely tho because I pay National Insurance through my day job I shouldnt have to pay it twice because I choose to freelance?

    Does anyone know how I can register as a freelancer so I can declare tax and stay legit yet not get charge additional fees like N.I?

    I only get a few hours worth of work per month so I hardly make any additional cash.

    Any advice and help would be really appreciated!
    ________
    Katelyne
     
  2. tbwcf

    tbwcf Active Member

    If you expect to earn less than £4,XXX (four thousand and something) per annumn via your freelance work then you can either declare your expectations and opt out or pay 'voluntary' contributions anyway - there's a form you can get to opt out, I can't remember what it's called but I think it's in with the booklet you get with the register as self employed forms.

    A little googling or looking on their website should get you on the right tracks.
     
  3. allyally2k

    allyally2k Senior Member

    I think it's small earners something or other. I just registered the other day and I know I won't earn as much as £6'000. Call them I rang this number I think 0845 915 4515 it's open till 8pm tonight.
     
  4. Greg

    Greg Active Member

    It's this form - http://www.hmrc.gov.uk/forms/cf10.pdf
    Application for exception from liability for Class 2 contributions

    If your earnings are less than £5,075 in 2010-11 you can apply for a Small Earnings Exception certificate by completing form CF10.
     
  5. tbwcf

    tbwcf Active Member

    That's the one!
     
  6. davewill

    davewill Senior Member

    thanks guys, ill fill that in now, its a real mine field isnt it all this hmrc legal stuff!
    ________
    LIVE SEX WEBSHOWS
     
  7. Becky

    Becky Member

    Great post, just gotten an NI and Tax letter from the HMRC and this has totally saved the day :)
     
  8. davewill

    davewill Senior Member

    Hi guys, sorry to drag up an old post but wanted to get some things clear in my own mind.

    To fill in the above CF10 form can I presume I already need to be registered self employed? As far as I understand it this form just means I dont need to pay National Insurance? Is that correct?

    Also, even though Im only earning less than £5,075 in a year I still need to fill in a self assesment tax form?

    So in order to be completely, 100% legit, I would need to make sure Ive registered self employed, sent off the CF10 form, and fill in a self assesment tax return every year?

    Anything else I need to do?
     
  9. Becky

    Becky Member

    Thanks for dragging this up!

    I received my small earnings cert. A while back and assume I need to do the same.

    I guess the best bet is to call them up for the self assessment forms, at least that's what I'm thinking. But to be honest I'm still a bit clueless too :(
     
  10. davewill

    davewill Senior Member

    Well annoyingly I did register self employed this time last year, then got a job so changed my mind and de-registered (or so I thought) and now Ive just received a letter from HMRC with a fine for not sending in my self assesment form!!
    I didnt realise I still needed to do one of those so Ive decided to get organised and sort it all out, Im just not sure where to start!
     
  11. dedwardp

    dedwardp Member

    You still fill in the tax return as normal and then any tax charged will be reimbursed.
     
  12. davewill

    davewill Senior Member

    Ive just spent the last hour on the phone to HMRC so I thought others may find the information I have been given of some use.

    Basically, all freelance graphic designers need to register self employed, even if you only do the occassional bit of work. To register, you need to call 0845 3000 627 and request your 'Unique Taxpayer Reference' which is a 10 digit code. This code will enable you to register online as a self employed freelancer.

    In addition to this you will be expected to complete a self assesment tax form each year declaring what your income has been from your additional freelance work. Failure to do this will result in a fine. (as I have just found out! :( )

    If you are in a similar position to myself (where you only do the odd job, and you expect to earn under £5,500 per year from your extra freelancing) then its useful to complete a Cf10 form, which is a small earnings exeception. This will mean that you dont have to pay any additional National Insurance as you will already be paying that via your day job.

    Hope all that makes sense. I struggle with this side of the job but I now feel like I know where I stand.
     
  13. Becky

    Becky Member

    Thanks Dave! I've done the CF10 bit, but I'll definitely get on the phone and sort out the rest (no doubt I'll be in line for a fine too,oops!)
     
  14. I've registered, done the CF10 form & everything, just waiting for them to tell me what i need to do re. self assessment (when i get the letter register & do it online). What did you mean by "his code will enable you to register online as a self employed freelancer. " though Davewill?
     
  15. davewill

    davewill Senior Member

    Well in order to be sent a self assessment form you have to be registered as self employed. When u go on hmrc website to do that you have to fill a form in and one of the bits of information you need is your unique tax reference which is 10 digits long. I don't know mine so I rang up to find out. They won't give it to you over the phone tho so u have to wait for them to post it to your house. Then once u have that code u can complete the registration form and you are officially self employed!
     

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