Structuring your business
It’s vital on day one that you decide which business model you want to adopt. There are two options, each with their own pros and cons.
1) Provide your own particular service for a set hourly rate
2) Function more as a company would, managing an entire project on behalf of a client, buying in additional expertise/materials if required to deliver what they need - and then marking these services up and selling them on in order to generate additional revenue.
The main benefit of option two is a financial one, whereas the main benefits of option one are a simpler business model, no cashflow issues and less liability if things go wrong. If you do choose option two then a limited company is almost certainly going to be your best bet, but you should still take advice from an accountant to be sure. To find out more about the differences between operating as a limited company or as a sole trader, please click here.
The other factor to consider is whether you would be happy to work on your client’s premises as an employee would for a fixed period of time, or a set number of days per month - or whether you prefer to work from home. This latter option gives far more flexibility to work with multiple clients simultaneously and is generally what is known as ‘freelance’, whereas working on client site would be more of a ‘contract’ arrangement.
If you do end up working on a contract basis, then SJD can still provide all of the support you need. For example, whether or not the work you are carrying out falls within IR35 legislation and what the implications of this would be.
If you have any questions about freelancing or would like any further advice please either contact your SJD Accountant or call our New Client Services helpdesk on 0500 152 500 or e-mail jaime.thorpe@sjdaccountancy.com.
Click on the links below to read our more detailed guides on freelancing
Freelancer Case Study
The Opportunity for Freelancers
How to Find Freelance Work
The Tools for the Job
SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to freelancers; we've been acting for freelancers across the UK since 1992 and have more than 10,000 clients.
We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.
Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, e-mail or meet your own dedicated accountant face to face.
Money backed service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns. All this for a fixed monthly fee of £95 plus VAT, which is one of the lowest prices in the market.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
Contractor FAQ - All your frequently asked questions and their answers
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Take home pay case studies - Examples of contractors using limited and umbrella companies
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35
