- This topic is empty.
FREELANCE INFORMATION REQUIRED
-
hi
I am hoping some of you could give me some advice. I was made redundant from my previous job in March this year.( it was not a photography job). I had been also studying photography at college which I have recently completed. Since being made redundant, I have been on job seekers. A few weeks ago I was offered a freelance position where I am getting between 2-4 days a week. I am being paid a daily rate for each day and I am being paid by cheque. My question is, as I am freelance now, what do I need to be doing regarding tax etc?? Also, would I still be eligible for job seekers for the remaining days I am unemployed? Any advice would be really welcome as I have never been on job seekers before and never been freelance so I am completely unsure as to what I should be doing now!
ThanksHi EMC,
Congrats on getting a freelance post first.
If your getting paid by cheque, your best bet would be to invoice the company involved as a sole trader, and as long as your just providing a service (photography) to them, you charge 13.5%. Next step would be either learn how to do your own books or get an accountatant to do it for you. Provide an invoice each week and keep track of all payments. simple.
Whether this will affect your job seekers is something I’m not too sure about. Depends how much your daily rate is. Best talk to the social welfare office, or even better, the person that does your accountants. Be careful on that one….be sure you get the details of your income right…
Hope this helps, Ken
As far as know you can work some time without it affecting your job seekers I think its 20 hrs so with 4 days im sure you are over that, just ring the dole themselves or CA they will let you know right away better you sort it out with the right info than taking advise on this on a forum.
13.5%????
VAT does not have to be charged when your turn over is less than €37,500 as far as I know
right so, does it affect our scratcher? technically you are self employed rather than working for someone for a few days a week, this may prove problematic with social welfare. There is an option of back to work enterprise, this would allow you continue claiming the dole while you set up your business.
constantine wrote:
Yeah, but you’d still charge VAT. Just in case…..
Why would you still charge VAT??
I never charge VAT, and I don’t earn enough from photography to hit the limit. I know many other freelance photographers who are the same as me.
Well, I am registered for Vat, and I know what the business end of a Tax audit looks like, and its not nice. I charge Vat just in case, as I said. If I don’t hit the ceiling, I don’t pay it, but what would happen if I did or exceeded the limit and wasen’t charging Vat? A big hole in your end of year revenue I would imagine…
As I said in an earlier post, get an accountant and pay for some sound advice. Once you are freelancing for profit you are working for yourself outside of the PAYE system. Take a chance and don’t pay Vat, your call, I’m not telling ye what to do, I’m just telling you what I do.
Ken
if you register for vat you have to pay it and charge it even if you dont meet the cieling dont you?
If you are registered for vat then the turnover limits are irrelevant and you must submit vat returns (i.e. pay vat to Revenue).
If your turnover is less than the €37,500 for supplies of services or €75,000 for supplies of goods, then you have the choice to register for vat if you wish.
Why would you wish to register? So you can claim back the vat paid on most of your purchases. If you don’t register then this money is lost.
You should at least register for income tax.
Also I believe vat should be charged at 21% for digital images supplied on disk or online.
thefizz wrote:
If you are registered for vat then the turnover limits are irrelevant and you must submit vat returns (i.e. pay vat to Revenue).
If your turnover is less than the €37,500 for supplies of services or €75,000 for supplies of goods, then you have the choice to register for vat if you wish.
Why would you wish to register? So you can claim back the vat paid on most of your purchases. If you don’t register then this money is lost.
You should at least register for income tax.
In addition to the above – You also need to take into account what clients you’re dealing with – if you mainly deal with business then you can charge VAT on top of your fees and they can claim it back – if however you deal mainly with the general public then VAT will be included in your fees…
So a job worth €100 for the public is really only €82.64 & VAT where as the same job for a business is €100 & VAT
You need to work out carefully what your turnover is and who your clients are. Registering for VAT could also cost you more.
I was just reading the revenue site details of what VAT rate to apply
Photography, Photographer’s Services
Rate: Reduced
Section/Sch: Para(xxii)6th Sch
Order:
Remarks:
Regarded as supplying goods. Rate applies to prints, slides, negatives, cinema & video film which record particular objects or events, exposed negative & film (incl commissioned wedding album). Standard applies to framed prints or new film, CDs, DVDs etc..Photography, Photographic Editing
Rate: ReducedPhotography, Processing
Rate: Red, Strd
Section/Sch: Para(xxi)6th Sch
Order:
Remarks: Reduced applies where photographic prints, slides or negatives are supplied to a person, having been produced from goods (e.g. a roll of film or memory card) provided by that person. Standard applies to supplies on other media such as CDs or the internet.So what rate should you apply if you are commissioned to take photos of an event or place and then edit those pictures? what happens if you do not give the pictures to your clients but mearley host them on your site
You must be logged in to reply to this topic.
