Setting up as a freelancer (in England) Thread poster: Mark Osborne
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Mark Osborne 
Germany
Local time: 03:41
French to English
+ ...
Hello everyone,
I'm planning to start work as a freelancer in the UK in about four months' time (with a fair number of contacts and experience already), and just have a couple of questions for you experienced experts:
- Do you regard it as necessary to use an accountant to help with tax issues, etc.?
- Is there any advantage in charging VAT, even if your income is below the minimum level (GBP 56,000)?
- Have you encountered problems maintaining... See more Hello everyone,
I'm planning to start work as a freelancer in the UK in about four months' time (with a fair number of contacts and experience already), and just have a couple of questions for you experienced experts:
- Do you regard it as necessary to use an accountant to help with tax issues, etc.?
- Is there any advantage in charging VAT, even if your income is below the minimum level (GBP 56,000)?
- Have you encountered problems maintaining a bank account in one country (e.g. Germany) when resident in another country (e.g. England)? Some banks seem to require residency in the same country...
Thanks for any tips!
Best wishes,
Mark ▲ Collapse
| | | | Mary Worby
United Kingdom
Local time: 02:41
German to English
+ ...
| Freelancing in the UK | Mar 16, 2004 |
Mark Osborne wrote:
- Do you regard it as necessary to use an accountant to help with tax issues, etc.?
Not absolutely necessary, but very useful unless you personally have expertise on tax, which I don't!
- Is there any advantage in charging VAT, even if your income is below the minimum level (GBP 56,000)?
The main advantage is that it allows you to claim VAT back on all purchases - computers, software, office supplies, telephone bills, etc. It does mean completing returns every three months, but if you are doing things properly and logging all your income and expenditure, the actual additional work is minimal.
- Have you encountered problems maintaining a bank account in one country (e.g. Germany) when resident in another country (e.g. England)? Some banks seem to require residency in the same country...
I've got an account in Germany, which I set up with a UK address and no requirement for a German address. Obviously this varies between banks, but I've had no problem!
HTH
Mary
| | | | | Freelance work in the UK | Mar 16, 2004 |
- Do you regard it as necessary to use an accountant to help with tax issues, etc.?
Not essential but very useful. Usually it will save you at least the cost of the accountant if not more. I do not know anything about tax!
- Is there any advantage in charging VAT, even if your income is below the minimum level (GBP 56,000)?
I agree with Mary but there is another advantage in relation to the EU and the new legislation. Some agencies/companies in EU countries... See more - Do you regard it as necessary to use an accountant to help with tax issues, etc.?
Not essential but very useful. Usually it will save you at least the cost of the accountant if not more. I do not know anything about tax!
- Is there any advantage in charging VAT, even if your income is below the minimum level (GBP 56,000)?
I agree with Mary but there is another advantage in relation to the EU and the new legislation. Some agencies/companies in EU countries insist on having your VAT number if not they will charge you VAT. Depends on whether you ever outsource work or not.
- Have you encountered problems maintaining a bank account in one country (e.g. Germany) when resident in another country (e.g. England)? Some banks seem to require residency in the same country...
I have bank accounts in the UK, the Netherlands and Spain. The only problems I have had are with the Spanish bank account: they will not send your banker's card by post nor can you send them a letter with instructions. I haven't had any problems setting up the accounts though.
Good luck! ▲ Collapse
| | | | Mark Osborne
Germany
Local time: 03:41
French to English
+ ...
TOPIC STARTER
Dear ladies,
Many thanks to you both for your replies - they have both been most helpful!
I'll have to think about the VAT option - reclaiming VAT obviously sounds very interesting, but then again it would put my prices up and make me less competitive...
Thanks again for your advice.
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Mary Worby
United Kingdom
Local time: 02:41
German to English
+ ...
Mark Osborne wrote:
I'll have to think about the VAT option - reclaiming VAT obviously sounds very interesting, but then again it would put my prices up and make me less competitive...
It would only make you less competitive if you are dealing with private individuals or very small companies. Anyone with a turnover of over £56,000 would be VAT-registered themselves and able to claim back the VAT you charge.
| | | | Kallen6
Local time: 02:41
Russian to English
+ ...
Mary Worby wrote: Mark Osborne wrote:
I'll have to think about the VAT option - reclaiming VAT obviously sounds very interesting, but then again it would put my prices up and make me less competitive...
It would only make you less competitive if you are dealing with private individuals or very small companies. Anyone with a turnover of over £56,000 would be VAT-registered themselves and able to claim back the VAT you charge.
You should be careful with your VAT, though. If you are working from home, remember that you will need to be careful about splitting any VAT incurred ("input VAT") between that which relates to your business and that which relates to your personal use.
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