Private person and invoice

[john-doe]

Hi,

I will be doing some freelance work soon for about 2 weeks. I was asked to provide an invoice at the end, but I am not self employed, neither am I running ltd business. Can I invoice the company with just my name (gov rules say to include the company name). It will be a one-off freelance work, which I intend to pay tax from, but I am not keen to set up a business or become a self employed for 2 weeks only... What are my options? Cash in hand is out of the question.

 

[Scalloway]

I would just do an invoice and put it under other UK income on your tax return.

 

[Gecko001]

Just use your own name on the invoice. You also have to put your address and the date it was issued and the amount of money you are charging. Also put brief details of the products/services you provided. This will be a legal document and all the information on the invoice must be correct.

You can make up a business name as well. It does not have to be a unique name or be registered anywhere or be trademarked, but if it is the same name as an existing business, you could leave yourself open to legal challenges and claims for damages connected with customers confusing your business with an established business.


Note, strictly speaking, doing this work means that you are self-employed despite what you think. You will have to fill in the relevant bits of HMRC income tax form regarding self-employment as said above.

PS Remember if you use a business name, your own name must also be put on the invoice.

 

[TheCyclingProgrammer]

I disagree with the above poster that a one of piece of freelance work (if that’s what it is) makes you self employed. If there’s no intention to trade going forwards then as Scalloway says I would just declare it as other income on your tax return. No need to register as self employed or fill out a self employment sheet.

 

[Gecko001]

I stand corrected the OP is planning to do it as a one-off job. Go with additional income as far as HMRC is concerned.

 

[MyAccountantOnline]

I would just do an invoice and put it under other UK income on your tax return.

My advice too.

 

[john-doe]

Hi again,

Because I had two different answers here I also made a phone call to HMRC. Actually I rang them twice and spoke to two different advisors. One said I must register as self-employed regardless of the time and occurrence (even if it is one-off). The other said - simply ring them when I finish my one-off freelance contract and let them know how much tax is due so they could charge it and we don`t need to see or contact again. He could not help me with the invoice matter, so I still don`t know if the private invoice with my name only will be sufficient... I wish they could give their answers in writing in case any potential issues or claims by HMRC I would have had a government written answer...

 

[MyAccountantOnline]

Hi again,

Because I had two different answers here I also made a phone call to HMRC. Actually I rang them twice and spoke to two different advisors. One said I must register as self-employed regardless of the time and occurrence (even if it is one-off). The other said - simply ring them when I finish my one-off freelance contract and let them know how much tax is due so they could charge it and we don`t need to see or contact again. He could not help me with the invoice matter, so I still don`t know if the private invoice with my name only will be sufficient... I wish they could give their answers in writing in case any potential issues or claims by HMRC I would have had a government written answer...

One gave you a 'by the book' answer.

The other gave you a sensible/practical answer.

You will often find HMRC call centres give conflicting responses (notice I avoided the word 'advice') and do bear in mind you are often speaking to call handlers not experienced skilled tax inspectors.

Ultimately you simply need to pay the tax due on this one off income, and by asking HMRC to send you a tax return, completing it, disclosing all of your income and paying the tax due you will do just that.

 

[Gecko001]

Yes the invoice with your name on it is OK.

You should have the following:

Name
Address
Date
Amount
Brief details of services/items supplied

I would put what you do under your name but I do not think it is absolutely necessary.

E.g.

Fred Bloggs
IT Services

There are other things that you can put on an invoice such as payment terms, email address, telephone number, etc but these are not essential.

 

[TheCyclingProgrammer]

Do what the second advisor told you.

Depending on the tax owed and your other circumstances you may not even need to do a tax return unless you already do them as HMRC may be able to adjust your tax code.

 

[Nochexman]

Can I invoice the company with just my name (gov rules say to include the company name).

There is a lot of over complication here. To answer your question...

Yes, invoice the company with just your name - you don't have a company and don't intend setting one up, so don't do it.

 

[SteveHa]

do bear in mind you are often speaking to call handlers not experienced skilled tax inspectors.

In the case of call centres, isn't the word "often" somewhat redundant. It's hard enough getting to speak to an EO in the call centres, let alone Inspector.