Invoice as individual

[rudminas]

Hello guys,
recently I did some freelance work. I was working in the evenings (because I'm working full time). Right now job is finished and my client asks for invoice. I'm not self employed or a company I just did one time work only. Is it possible to write invoice as a individual or do I need to register as self employed only for one invoice?
How this is done?

Thanks

 

[MyAccountantOnline]

Hello guys,
recently I did some freelance work. I was working in the evenings (because I'm working full time). Right now job is finished and my client asks for invoice. I'm not self employed or a company I just did one time work only. Is it possible to write invoice as a individual or do I need to register as self employed only for one invoice?
How this is done?

Thanks

If it is going to be only for one week I'd write to HMRC and advise them and ask if they will accept you declaring the income as 'other income' on your tax return rather than going to the trouble of registering as self employed for such a short period of self employment.

Strictly you should register as self employed but hopefully HMRC will take a common sense approach.

 

[rudminas]

Hi, thanks for quick reply!
And could I bill client and within month or so register as self employed?
I'm thinking to start freelancing in near future

 

[MyAccountantOnline]

Hi, thanks for quick reply!
And could I bill client and within month or so register as self employed?
I'm thinking to start freelancing in near future

If you are considering commencing in the near future so that this first work wasn't a one-off you need to register as self employed now.

You do have to register as soon as you become self employed.

 

[Spearmint]

If it is going to be only for one week I'd write to HMRC and advise them and ask if they will accept you declaring the income as 'other income' on your tax return rather than going to the trouble of registering as self employed for such a short period of self employment.

Strictly you should register as self employed but hopefully HMRC will take a common sense approach.

Is that the suggested approach for the following scenario -If I was to employ a couple of people who work from home to do some ad hoc sewing work for me, and I asked them both to provide me with an invoice, would they also need to advise the HMRC that they are self employed?
I think I'd read on a previous thread, that its better to ask all casual labour to provide an invoice as other complications could occur if you dont! However, I wouldn't want my helpers to suffer as a result of helping me, if you know what I mean!

I apologise to the OP for stealing his thread, but it is related!

 

[Spongebob]

Is that the suggested approach for the following scenario -If I was to employ a couple of people who work from home to do some ad hoc sewing work for me, and I asked them both to provide me with an invoice, would they also need to advise the HMRC that they are self employed?
I think I'd read on a previous thread, that its better to ask all casual labour to provide an invoice as other complications could occur if you dont! However, I wouldn't want my helpers to suffer as a result of helping me, if you know what I mean!

I apologise to the OP for stealing his thread, but it is related!

I'd always been under the impression that such casual arrangements were universally conducted in cash.

 

[MyAccountantOnline]

Is that the suggested approach for the following scenario -If I was to employ a couple of people who work from home to do some ad hoc sewing work for me, and I asked them both to provide me with an invoice, would they also need to advise the HMRC that they are self employed?
I think I'd read on a previous thread, that its better to ask all casual labour to provide an invoice as other complications could occur if you dont! However, I wouldn't want my helpers to suffer as a result of helping me, if you know what I mean!

I apologise to the OP for stealing his thread, but it is related!

You need to be very careful with employment status - it's your responsibility to pay people you engage to undertake work correctly ie as self employed individuals if they are self employed, and as employees if they are employed.

You've actually already said If I was to employ a couple of people who work from home

Merely getting someone to register as self employed and give you an invoice doesnt mean they are self employed. Have a read here.

 

[MyAccountantOnline]

I'd always been under the impression that such casual arrangements were universally conducted in cash.

Nothing stopping anyone paying in cash, but if it's not recorded you dont get tax relief on an allowable expense

 

[Spongebob]

Nothing stopping anyone paying in cash, but if it's not recorded you dont get tax relief on an allowable expense

True, but generally it allows you to pay around 30% less to the worker.

 

[MyAccountantOnline]

True, but generally it allows you to pay around 30% less to the worker.

So no one benefits really.

 

[Spongebob]

I've thinking about this.

I use a 'man and van' every couple of weeks to do deliveries for me. I pay him in cash, drawing out the required sum from the local cashpoint and recording in my cash book as being for 'carriage out'. I receive no invoice.

My accountant still records these transactions as allowable expenses.

 

[MyAccountantOnline]

I've thinking about this.

I use a 'man and van' every couple of weeks to do deliveries for me. I pay him in cash, drawing out the required sum from the local cashpoint and recording in my cash book as being for 'carriage out'. I receive no invoice.

My accountant still records these transactions as allowable expenses.

Why shouldnt you claim tax relief on it?

The only real potential issue you have is that without an invoice you cant prove the payments on which you are claiming tax relief have actually been made. It's certainly always best to get a receipt for that reason.