Forum
Registering needed for a one-time freelance work
I would like to ask your advice what would be the best decision in my case.
I started working on a one-time freelance work (animation) in the summer for a client. I have completed most of it but I still need to do some correction before they can send me the full payment. So far I have received 2/3 of the payment with the last 1/3 being sent when I complete the corrections and thus finish the project.
I am a student at the moment it it doesn't seem probable that I will be doing any other jobs till next summer. This is the only job I have done so far and it is not likely that I will have more than one or two smaller one-off jobs a year before I graduate. The total amount of this job is about 3000 pounds.
What I would like to ask:
1. Whether to register or not to register as a sole trader?
- if I understand well, if I register as a sole trader, I have to start by filling out forms that my income is not going to be more than 7500 pounds, an also for the Class 2 NI that my income is not going to be more than 5500 pounds.
- also, if I register now, I will be fined 100 pounds+ for not registering within 3 months of my first payment. I couldn't register earlier as I have just received my NI number last week (I am an EU national).
- on the other hand, I called the small business helpline and they said that if I register as soon as I received my NI number than they understand it and won't fine me, because it was not possible to register earlier.
2. My other alternative is not to be a sole trader, but just to tell HMRC on my tax forms that I had other income. Before I visited this forum I didn't think about it as a possibility.
- Do you think it's the best way in my case? I won't be doing any freelancing work as a business before I graduate, I am talking about 1 or 2 jobs per year in a total of max. 5000 pounds. Do you think I am safe in the non-registered category until I start working "seriously" after I graduate?
I started working on a one-time freelance work (animation) in the summer for a client. I have completed most of it but I still need to do some correction before they can send me the full payment. So far I have received 2/3 of the payment with the last 1/3 being sent when I complete the corrections and thus finish the project.
I am a student at the moment it it doesn't seem probable that I will be doing any other jobs till next summer. This is the only job I have done so far and it is not likely that I will have more than one or two smaller one-off jobs a year before I graduate. The total amount of this job is about 3000 pounds.
What I would like to ask:
1. Whether to register or not to register as a sole trader?
- if I understand well, if I register as a sole trader, I have to start by filling out forms that my income is not going to be more than 7500 pounds, an also for the Class 2 NI that my income is not going to be more than 5500 pounds.
- also, if I register now, I will be fined 100 pounds+ for not registering within 3 months of my first payment. I couldn't register earlier as I have just received my NI number last week (I am an EU national).
- on the other hand, I called the small business helpline and they said that if I register as soon as I received my NI number than they understand it and won't fine me, because it was not possible to register earlier.
2. My other alternative is not to be a sole trader, but just to tell HMRC on my tax forms that I had other income. Before I visited this forum I didn't think about it as a possibility.
- Do you think it's the best way in my case? I won't be doing any freelancing work as a business before I graduate, I am talking about 1 or 2 jobs per year in a total of max. 5000 pounds. Do you think I am safe in the non-registered category until I start working "seriously" after I graduate?
- Contact in PM
playboy_bunnie
Messages count : 33Likes count : 0Registration : 23 December 2007
You need to register regardless; whether you get full payment or not. It is the intention of doing the work for payment which requires you to register, within 3 months.What I would like to ask:
1. Whether to register or not to register as a sole trader?
You can do this as part of the above registration, it is a declaration that would you earn will be beneath the LEL so as not to pay NI.- if I understand well, if I register as a sole trader, I have to start by filling out forms that my income is not going to be more than 7500 pounds, an also for the Class 2 NI that my income is not going to be more than 5500 pounds.
I dont think they will accept that as an excuse; usually they provide a temporary NI number, until you recieve your proper one and they would accept that for registration.- also, if I register now, I will be fined 100 pounds+ for not registering within 3 months of my first payment. I couldn't register earlier as I have just received my NI number last week (I am an EU national).
This maybe true for Tax purposes, but I'm not fully conversed on that side of things.2. My other alternative is not to be a sole trader, but just to tell HMRC on my tax forms that I had other income. Before I visited this forum I didn't think about it as a possibility.
Againn, doesn't matter if you worked for £10 or £1000, you must register for tax/NI purposes. Being a student or only doing one job is not an excuse.- Do you think it's the best way in my case? I won't be doing any freelancing work as a business before I graduate, I am talking about 1 or 2 jobs per year in a total of max. 5000 pounds. Do you think I am safe in the non-registered category until I start working "seriously" after I graduate? - Contact in PM
Lupita
Messages count : 207Likes count : 6Registration : 2 November 2006 - Contact in PM
zsero
Messages count : 2Likes count : 0Registration : 6 November 2011I noticed that too. Thanks for the answers. I think I will write to the HMRC with covering letter.
Do you have any advice what should I write to them and in what style?
I didn't get my NI number because the local Jobcenter Plus could only give me appointment for 4 weeks in advance and I was traveling during the summer, thus I couldn't make an appointment for 4 weeks in advance.