Freelance work advise
 

Hi, I have applied for a job and I believe I will be freelance.

Now If I am correct, They would pay me say £45,000 gross and out of that I must pay my own Tax and NI?

Do I need to set up a company?

Any information would be helpful

Re: Freelance work advise
 

You would either have to become self employed and complete a tax return. HMRC would then bill you annually for tax and NI; or, set up a company for your new employer to engage with; or, join a contractor umbrella company.

Beware however of only working for a single ‘customer’ if you set up as a company. HMRC may treat this as ‘concealed employment’ under a rule called IR35 which has serious tax implications. This can be quite complex. There’s more information here: https://www.hiscox.co.uk/business-bl...tors-hiscox-uk

Re: Freelance work advise
 

It sounds as though you will be self employed and as such will be responsible for paying your own tax and national insurance. You will probably also want to ensure that your pension contributions are sorted. My husband was a sole trader for most of his working life and never needed to set up a company as such. He did cover any claims that could have arisen against him by taking out insurance never had cause to use it and you may not have to have any.

You will need to look closely at any restrictions that the company may want apply, restrictions on how and when you work could raise a red flag as some "freelance" work is offered as a way of the company manipulating your employment status thus saving them money and I have dealt with cases in which the the people concerned were in effect employees and not self employed.

Have a look at this link, which is quite comprehensive when it comes to the practicalities.

Chris beat me to a reply :D but what he says is spot on.

https://www.simplybusiness.co.uk/kno...self-employed/