Seeking freelance, self employed advice
Discussion
Head over to http://www.contractoruk.com/
Set up a Limited Company - don't go sole trader unless you like the idea of being utterly liable for everything you do
Get an accountant - it will be cheaper in the long run to set things up right now.
Check the grammar and spelling on everything you put in front of a customer, it might be perceived as "picky" I do not want my company website to refer to "manor", for example.
Wordpress is probably not going to get you that far, Drupal more so.
Do you have a contact book already of likely customers? If not, you are probably going to struggle. Recruitment Agencies will generally find you long six-month contracts as a body at a desk, not small jobs.
How good are your project management skills? When you set out on your own you will find that all those people floating around in the company who you thought were just scenery actually did do useful things. Even the "admin girl" who sends out invoices, chases customers when they don't pay and answers the phone to prospects while your head is buried in code.
Make sure you have at least six months living expenses stored away before handing in your notice.
Set up a Limited Company - don't go sole trader unless you like the idea of being utterly liable for everything you do
Get an accountant - it will be cheaper in the long run to set things up right now.
Check the grammar and spelling on everything you put in front of a customer, it might be perceived as "picky" I do not want my company website to refer to "manor", for example.
Wordpress is probably not going to get you that far, Drupal more so.
Do you have a contact book already of likely customers? If not, you are probably going to struggle. Recruitment Agencies will generally find you long six-month contracts as a body at a desk, not small jobs.
How good are your project management skills? When you set out on your own you will find that all those people floating around in the company who you thought were just scenery actually did do useful things. Even the "admin girl" who sends out invoices, chases customers when they don't pay and answers the phone to prospects while your head is buried in code.
Make sure you have at least six months living expenses stored away before handing in your notice.
I was in a similar position, 10 years experience of web and desktop with .Net and all up-to-date web technologies. I went freelance about 5 years ago (I'm not any more), although it was only 50% of the time (other 50% was a big project which was fairly steady). Although I only did remote work from home and refused any on-site jobs so I was limiting my customer base.
There are positives and negatives. You're your own boss so you can choose the types of projects you want to take on - that was nice. Also you can often choose the technologies you use so you get to keep your skills really up to date.
There are good months and bad months. I've been paid £250 for 5 minutes work and £60 for 2 days work. But no matter how much I tried, I could only get my annual income 70% of the way towards a salaried job - and that's after accounting for no commuting costs, etc.
If you're doing remote work, be prepared to compete with completely unqualified "developers", usually from India, who will charge a fraction of your cost. Yes you can be there to pick up the pieces when they fail to deliver the project, but it can be demoralising trying to prove you're worth 100 times more than someone who claims they can do the job faster!
Also, when you know how much each hour of work is worth to you, you'll never stop. Well I didn't, anyway. I worked in bed, while I ate, while I was on holiday, etc. If my wife ever made me stop, I felt anxious about how much I was potentially losing out on and couldn't really switch off.
When the big project which was taking up 50% of my time ended, I went back to a salaried job and I am really happy in it. The commute is crap, I don't get to choose my own projects, I have less freedom... But when I'm home I can switch off and I can actually take proper annual leave which I basically haven't done for 5 years. Also it's nice to make some long term plans with a steady income.
It's good to know I can go back to it if my situation ever changes, but I think next time I try being self employed I'll need a different plan.
There are positives and negatives. You're your own boss so you can choose the types of projects you want to take on - that was nice. Also you can often choose the technologies you use so you get to keep your skills really up to date.
There are good months and bad months. I've been paid £250 for 5 minutes work and £60 for 2 days work. But no matter how much I tried, I could only get my annual income 70% of the way towards a salaried job - and that's after accounting for no commuting costs, etc.
If you're doing remote work, be prepared to compete with completely unqualified "developers", usually from India, who will charge a fraction of your cost. Yes you can be there to pick up the pieces when they fail to deliver the project, but it can be demoralising trying to prove you're worth 100 times more than someone who claims they can do the job faster!
Also, when you know how much each hour of work is worth to you, you'll never stop. Well I didn't, anyway. I worked in bed, while I ate, while I was on holiday, etc. If my wife ever made me stop, I felt anxious about how much I was potentially losing out on and couldn't really switch off.
When the big project which was taking up 50% of my time ended, I went back to a salaried job and I am really happy in it. The commute is crap, I don't get to choose my own projects, I have less freedom... But when I'm home I can switch off and I can actually take proper annual leave which I basically haven't done for 5 years. Also it's nice to make some long term plans with a steady income.
It's good to know I can go back to it if my situation ever changes, but I think next time I try being self employed I'll need a different plan.
I found the most comforting way to start was to work out your costs and out goings each month and target getting enough business in to cover that.
I was fortunate that I took work (with thier agreement) from my employer with me, but basically my starting business costs was £300 a month for a truck and £200 for the accountant.
That way I was able to say, ok, two days work a month covers the business costs, another 4 days covered my input to the house costs, rest is profit!
Hope that helps.
I was fortunate that I took work (with thier agreement) from my employer with me, but basically my starting business costs was £300 a month for a truck and £200 for the accountant.
That way I was able to say, ok, two days work a month covers the business costs, another 4 days covered my input to the house costs, rest is profit!
Hope that helps.
Oh yes, I second bigbob's comment on competition. It's a double threat actually
1) The Outsourcers all claim they can do everything, immediately, at next-to-no-cost.
2) The customer does not place much value on websites or Apps. They consider a website to be something that a five year old can build and an App is free, it doesn't cost me anything for these cools ones off the App Store, innit?
1) The Outsourcers all claim they can do everything, immediately, at next-to-no-cost.
2) The customer does not place much value on websites or Apps. They consider a website to be something that a five year old can build and an App is free, it doesn't cost me anything for these cools ones off the App Store, innit?
Flooble said:
2) The customer does not place much value on websites or Apps. They consider a website to be something that a five year old can build and an App is free, it doesn't cost me anything for these cools ones off the App Store, innit?
Also, they'll give you shares in their amazing app company and even better you'll be able to put it on your portfolio!!Eric Mc said:
You think £200 is expensive?
It depends of course on what the client actually wants from the accountant and how complex his accounting and tax affairs are.
Yes, for a small simple business turning over a thousand or two each month, which is what was implied. It depends of course on what the client actually wants from the accountant and how complex his accounting and tax affairs are.
As you say, it depends on what is required but I would generally expect £75-125 for the accountant. Now, if they had to do all the book-keeping as well and the business is actually something quite complex with lots of stock movements and confusing invoicing then it would be different ...
And don't forget their other tax self assessment requirements outside their self employed income.
I literally cannot commercially charge less than £100 for a self assessment tax return. It's not worth mu while taking on any work for less than that.
If a person is actually running a business and wants to make sure they are claiming the right kind of costs, capital allowances and maybe business loss reliefs etc then paying more than £200 might be a very worthwhile investment for them.
I literally cannot commercially charge less than £100 for a self assessment tax return. It's not worth mu while taking on any work for less than that.
If a person is actually running a business and wants to make sure they are claiming the right kind of costs, capital allowances and maybe business loss reliefs etc then paying more than £200 might be a very worthwhile investment for them.
It might be more involved than what I use mine for, of course. For basic accounting, self assessments, vat filing and accounts for my business turning over 5k or so per month my accountant charges around £800 per annum, all in. And he's very good. I can't see why for the basics it would cost much more than this, my colleagues all pay around the same for theirs too, one or two pay slightly more.
Eric Mc said:
And don't forget their other tax self assessment requirements outside their self employed income.
I literally cannot commercially charge less than £100 for a self assessment tax return. It's not worth mu while taking on any work for less than that.
If a person is actually running a business and wants to make sure they are claiming the right kind of costs, capital allowances and maybe business loss reliefs etc then paying more than £200 might be a very worthwhile investment for them.
I think £100 for an SA return is cheap, but the OP is paying £200 per month . I am sure you don't charge £1200 for any but the most complex Self-Assessment returns?I literally cannot commercially charge less than £100 for a self assessment tax return. It's not worth mu while taking on any work for less than that.
If a person is actually running a business and wants to make sure they are claiming the right kind of costs, capital allowances and maybe business loss reliefs etc then paying more than £200 might be a very worthwhile investment for them.
I am not the OP, I am happy with what is provided and what I pay for the amount they have to do for me.
I was merely trying to get the actual OP to look his operating costs for going it alone and that gives a massive confidence boost when you hit that in the first week, then the rest is a very happy month.
V.
I was merely trying to get the actual OP to look his operating costs for going it alone and that gives a massive confidence boost when you hit that in the first week, then the rest is a very happy month.
V.
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