Hot answers tagged

14

Unless UK tax law has some strange twist, your own labor always zeros itself out. Imagine that you actually paid yourself, and you could claim that expense as the cost of doing business. However, you would also now have new income (from your new client - yourself). The income amount is equal to the expense amount; the net is zero.


12

As I can see, you charged them 8 pounds per hour, which is $13 per hour. This is a very good price and you definitely did not overcharge them. Your other mistake is that you investigated the price of work in the UK. You cannot do that. If they wanted a UK developer, they would have taken one. You have to charge them your hourly price, which is enough to ...


9

Life's too short.. You have 2 choices.... Invoice for the work you've completed. Wait until that invoice is paid. Then tell him you're done. You'll package everything and prepare to deliver things in their current state and he will be free to find another developer to finish the project. Be quiet, sit back, and realize your only option is to deal with the ...


7

The easiest way to actually provide your services to a charity is volunteering for the charity themselves; it's free, and off-the-books. You don't have to declare anything, and you don't have to pay national insurance, which is a plus. However, if you want to incorporate as a nonprofit in the UK, you need to incorporate as a Company Limited by Guarantee (...


7

You don't have to receive wages to claim home office as a business expense, however, you do need to use the office exclusively for that business and not for personal purposes. For the US, see this summary from TurboTax for more detailed information. For the UK, as long as the office space has no other use for the time you are working you can deduct the ...


6

I actually have to say, I don't think this is a "scam". He has been in touch over a very extended period of time. I do think how this is a very bad idea. I often meet other freelancers, who with all the best intention in the world really do believe they have the next Facebook. I believe you may be dealing with someone who isn't fully aware of what makes ...


6

Each company needs to have a registered address. The company's address does not need to be one where it does business - just one where official mail and court papers etc can be delivered. It would not be unusual for a small company to use the address, say, of their accountant's offices. However, UK Ltd reporting requirements also include the need to inform ...


6

good idea to start a bit of freelancing on the side! There are some rules but they are easy and shouldn't scare you off. I'm in the UK too: the income is taxable in the same way as your normal income you will need to register with HMRC as a sole trader (even though you keep your normal job) - I think within 3 months but I could be wrong (https://www.gov.uk/...


5

You've done good research on how much you should charge. You can follow those guidelines. You might have to undercut at first to prove your credibility. There are plenty of web designers out there, but do research on how many are in the area that you live. Nobody is going to hire someone who is untested until they prove that they can do the job. Freelancing ...


5

Leave this dude alone. You're going to get burned. There is nothing particular to web site development that this guy is doing. Let's look at this objectively. This is someone who you don't have any vested relationship with -- an acquaintance; not a close friend or family member. To add, he hasn't even become a customer!!! Yet he felt it was okay to ...


5

Step 1 - Run away. Step 2 - Refer to step one. I say this because this is how many freelancers get stuck doing work for free, or much less than they should be. Future profits mean nothing when you're waiting a year or two to see a penny for your work! If they don't have a budget, you can stay in contact, but do not do any work for them. You will have very ...


5

It is good the customer has paid you. Unless contracted to provide services to them for the rest of your life, consider it ample opportunity to reconsider your relationship. I would avoid a customer who is a little quick to threaten the law. Customer/Supplier relationships are unlikely ever to improve. If they are serious in legal action against you, then ...


5

I don't know the specifics of the UK, but at a high level I suspect it is similar to the US. Once you have formally registered your business entity, the government expects periodic reporting from you with respect to taxes. You need to file even if you haven't done any business, just indicate in the filing that you have no revenue. In the US, there are ...


4

The amount you charge is somewhat irrelevant. It does not even come remotely close to anything I'd ever consider as "over" charging. If I wanted to work for $13/hr I'd have full time job, which would still pay better than that. All clients want better/cheaper pricing. All of them. It's not up to the client to dictate your pricing, it's up to you. But that's ...


4

The rate seems pretty fair to me but should not matter assuming you have an agreement from the client to pay an amount for a product or service that you have delivered. One tactic you might like to try is to threaten to place the debt with a debt collection agency in the UK if it is not paid within a certain amount of time. A UK debt collection agency will ...


4

HMRC consider the City to be a single location. In fact, the rule is considered to apply where the journey to work is broadly the same. This rule is modified where the employee works at a succession of workplaces but the change of workplace has no substantial effect on the employee's journey to work. All such workplaces are treated as the same ...


4

I don't think I'm allowed to charge myself my hourly rate as an expense No! Well, not necessarily... if you run your business as a company, then you could bill the company for your time, but you would have to account for that personally; if you are (as tagged) self-employed then it is more clear - the payment would count as Drawings (ie post tax) would ...


4

First, I think this is likely to depend on a lot of things. If you are concerned it might be worth discussing the matter with a lawyer, and the question may be too broad to have a singular answer. However there is at least one major factor you would probably want to look into with the retailers you are considering early on in this process. In other words, ...


4

This varies from place to place and sometimes with time, as well as the relationships of the countries involved. In general, it is a reasonably safe bet that some sort of work permit is required to do billable work onsite for a customer in another country. The form of work permit may vary. For example, if you are a professional in IT services with a 4 ...


4

In the UK, domestic work is VAT-exempt if you don't meet the income threshold for VAT (currently £82,000). If they ask for your VAT number for tax purposes, simply state that you are not registered for VAT and do not charge VAT. If they complain, they have a mediocre accounting department as this is the very first section on VAT in almost all documents ...


4

I don't know about overseas, I'm in the US. However, a signature is a signature - whether it's in a PDF or scanned as jpg, or a digital signature - they all indicate an agreement to terms. What is imperative is some indicator that terms were seen and agreed upon. That can be done in many forms. No one form is better than another inherently. Often you'll ...


4

Why would it be illegal? It seems you are buying a service (that you cannot provide) from your partner. Nothing wrong with that. Whether your company structure is optimal, is another matter that very much depends on your jurisdiction. Addendum: Assuming self-employment is somewhat comparable between the UK and Denmark, the main concern for the (tax) ...


4

Yes to the question title, no to the question in the text. Gumroad simply deals with the EU VAT paperwork for you, nothing else. Registering as self-employed, filing taxes with HMRC etc. is all a completely different matter and still needs to be done. You currently don't need to register to for VAT in the UK unless your VAT taxable turnover is more than £...


4

It is perfectly acceptable to work from the US for a UK company. You will need to invoice the UK company from a US entity (either Inc or self-employed), paying the taxes at a state and federal level in the USA. You should call your state's small business administration (sba.gov on a federal level) and ask for advice on how to get set up.


3

Whilst impossible to state that 'no that site does not exist', I can say that no such site exists that has significant market share and thus would not suffer from the same problem as the PeoplePerHour UK site. Essentially your question is centred around two issues; needing higher quality (ideally UK) clients, and differentiating yourself from $5 per hour ...


3

This may not be a "scam" per se, but it's certainly showing all the signs of being run by someone who is lacking in their communication, accounting, ethics, proper business practices, budgeting, business plans, and general common sense. And for what it's worth, I think it IS a scam. This person has promised the world and given nothing, has attempted to ...


3

Contract positions, almost without exception, are advertised exclusive of VAT. I say 'almost' but in several years of freelance working I've never been presented with a rate that was inclusive of VAT. The reason for this is that everybody in the chain of employment - the client, the agent (if there is one) and the contractor are all VAT registered. Each ...


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