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You have taken action and you are your own boss. Congratulations, now, let’s take a look at
all of your obligations. And don’t think that it is too hard, you probably know a lot about saving money already.
Now you wear two hats, the employer and employee.
Starting a Limited Company For Freelancers
Depending on your area of expertise, you will have chosen to operate your sole proprietorship under your own name or register it in the Companies Registry and thus obtain your company number in London. Identification of your company that replaces, in the first case, your personal national insurance number.
We will focus on the simple and uncomplicated option of the independent person acting under his own name. Here are the advantages:
There is no need for you to:
• look for a distinctive business name, which is not yet in use, and reserve it
• register your business name, thus completing the initial declaration in the Commercial Registry
• to make annual updates
It is possible for you to:
• use your personal bank account
• to take your commercial purchases to your personal credit card
• to sign a personal check for a professional service related to your business
Imagine all the service and administration fees saved here!
However, it makes sense to register a limited company if you want more of the tax savings at the end of the year and you are growing your business.
Is It Worth Starting a Company?
Here are two schools of thought: one that advocates avoiding the problem due to additional
documentation and the other that suggests a company adds seriousness to your business,
and also keeps your income secret.
First of all, it should be borne in mind that a person who is self-employed generally does not intend to bill more than £75,000 of goods and services in the same fiscal year is not required to collect sales taxes (VAT).
For the independent professional whose livelihood is full-time (e.g. real estate broker, graphic designer, journalist, translator), it is interesting to register for company taxes and then use the simplified calculation for paying yourself a salary.
As a result, more taxes can remain in your pocket based on the company tax rate.
But beware this salary amount will be added to your income at the end of the year.
Feel free to talk to your accountant in Hammersmith or anywhere else in London, depending
on your area.
He will guide you according to the needs of your company.
Why Use An Accountant For Freelancers?
An accountant specializing in the taxation of freelancers can advise you, but also do the work for you, in whole or in part.
So, if this aspect of your business is beyond you always reach out for help with your paperwork.
As a freelancer, the first thing you should do is educate yourself on how to save money on your taxes.
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