As a fully qualified professional, you may have recently made the decision to leave your place of employment to become a freelancer. There are many benefits that can be had from being a freelancer or contractor, which is why so many people in the United Kingdom make this move each year.
Despite benefits such as flexible hours and setting your own fees, there are a certain number of things that require quite a lot of consideration. Therefore it makes sense to seek the help of a professional who knows all about the requirements of someone in your position; this person is an accountant.
So what could an accountant help you with as you make the full transition into being a freelancer? Here are a few key areas:
Tax returns
One of the biggest responsibilities you will have as a freelancer is the job of doing your tax returns. The first thing you will need to do is let HMRC know that you are freelancing; you can do this through the website by filling in all of the required data fields. After you have registered for self-assessment, you will be able to do the procedure after the end of each tax year. You will be able to take lots of things into account such as expenses incurred through travel to clients, or even energy bills for your home if you also use it as a working place. However an accountant would be able to give you the best information about what needs to be provided as evidence.
Business structure
There are many options to take when it comes to being a freelancer – so you may require some guidance on the structure that you want your business to take. For example you may be a sole trader, or you might be looking to form a partnership. An accountant would be able to give you the details behind each choice, meaning you will know what taxes and fees could be expected to be paid, and what rights you will have.
Company closure
At some point in the future, you may look to close your company – either to do something different or to begin a partnership with someone else. Whatever the reason, an accountant will be able to help you to wrap up all of the loose ends and ensure you have done everything in the correct manner. This will mean you won’t have any unforeseen issues when it comes to taxation and so on; professional assistance can set your mind at ease.
Professional indemnity insurance
Finally, you should also think about insurance. For example, IT contractor insurance is important when it comes to professional indemnity in the trade. A freelance IT consultant would provide advice and services to clients, and errors in this could cause the client to lose money. This insurance cover would give you peace of mind if you were in this position, whether you were working in IT or another area.
