Making it Big – But starting off small
Self employed freelance.
High proportion of us will follow this route. Working in this sector not working in this sector. A variety of ways to engage with this topic. To be prepared to know about the areas that we could be facing. Administer.
Either a product or a service. We are Entangleable asset. It’s important to manage that relationship. We are the service we need to manage with the client the best.Not always the best animator that gets the work but those who can work with people that secure that work.
Service driven industry, secure work how? To deliver that result (us working in animation).
You can take a job for less then this, if you consider it as an investment for the future progression. But think about where you can cut in your life.
Freelance / business
Hospitality is going put for coffee
Minimum turnover our business can take
PERSONAL + BUSINESS EXPENSES = TURNOVER
And then your daily rates is?
3000 pounds a month
Weekends = 104
Bank holidays = 9
Holiday = 20
Contingency / sick days = 5
So actual amount of days = 227 from a year 365 days
- 160 pounds a day
- 100 – 120 pounds a day
- After two days 250 a day
- Graduates = 120 a day
- And then per hour
- Daily rate
- Amounts of hours
Market price will determine whether we will increase the price or not. Factor in raw costs. Can you make enough to cover all your costs. Increase costs on more days. How to deliver the price to the clients
Don’t ever undercharge!!!
It all depends on the market are we unique? The cupcake – barometer of the true market. How we market ourselves like that cupcake, how expensive and luxury are we.
Amount (due – total)
VAT (earn 83,000 add VAT to total)
Copyright (claim on the invoice – who does this work belong too) offer to sell it, license it or keep it. In the contract for the company. Work belong sot the employer.
Payment terms and details (30 days credit… till they pay)
Offer discounts for early payment
Limited company number
The invoice is Legally binding, can play around and add discounts for work if the money is paid in advance. Money on delivery / Money in 14 days, It’s up to us
TERMS AND CONDITIONS ON THE INVOICE
All copyright and intellectual property belongs to … (us unless stated)
Deposits and total projects costs that are less that £400 must be paid in advance
The project commencement ate in order for the work to begin.
Not paying before the agreed advance date will lea to a delay.
All other payments are due within 30 days of the invoice date.
- Payments should be made via bank transfer to the following account
- Account name: sort-code: Account Number:
- IBAN: SWIFT
- IMPORTANT: We do no accept cheques
- .. If you are a limited company registered in England and Wales
- Company number 070948308
- Thank you for working with us.
- Fell free to send any questions through billing@
What happens if it all goes wrong?
- -Email / Phone call
- -Wait reasonable time
- -Repeat (4 five days)
- -Then you need to make a calculation on whether you want to do business with them again?
- -Friendly reminder (send a copy of invoice.) Keep a file of all the emails along side the business. Evidence if it does go wrong.
- 30 +1 days, call them up reminding it’s over due. Don’t trust them. Repeat again, send email. Not answering him.
- Landline if he doesn’t pick up mobile. Remind him. Maximum of another 30 days. Then decide to take action.
THE SMALL CLAIMS COURT
- Easy to do, either download or do it online.
- An guess what, the threat is often better than the actual
- And even better, you can charge interest of 8% for late payments!
- An reclaim your cost
Email the client and threat to take it to the small claims court – he should pay.
Interest at 8% APR daily
- Dependent on amount you are claiming
- And whether claiming on or offline
- Remember you can claim them back as part of your costs.
FREELANCE / SELF EMPLOED / SOLE TRADER
Pay income tax on your profits through self assessment
Pay PAYE on any employees
May be best to use other freelancers so responsible for own tax
Can be self employed and employed at same time – N1 X 2
Register with HMRC within 3 months of trading, otherwise you will be fined.
DOUBLE NI for self employed and employed.
SETTING UP SELF EMPLOYED
You have to register in HMRC within 3 months of trading.
- When your self employed you need to pay class BUCS on your income – 2.80 a week.
Less than 6 grand we do not have to may NI Contributions.
Also need to pay class 4 NICS on your profits.
– if your business fails, you as the person will have to pay from your personal assets.
- However most creative find this works as a flexible structure for low risks businesses.
Two or more people set up I business together. Each partner is responsible for all the debts, even if cause by the other partners. Have a partnership agreement, what happens if one persons wants to exit. Rules behind Intellectual property. Negotiate on point of exit. Reduced amount for leaving 10%
- Company goes bankrupt not us. We need to register company at company’s house.
- Become this if we go in debt
- Community interest companies
- Product – damage for something
- Public – exhibition, shop, trade fair
- Professional indemnity – legal claims against advice – if we are sued we need insurance
- Content – theft
- Legal – copyright claims
- Life – are you responsible
- Turnover greater than 83,000
- Register if you think that you are going to do that turnover in the year
- Can ‘voluntarily’ register
- VAT is 20% tax on purchases and sales
Looks more professional – we are a larger company/individual
You are taxed on your profit
Keep records of all outgoings
Income minus outgoings = profit
Aim is to legally reduce your profit
And therefore pay less tax
Penalties are fierce for not keeping accurate accounts
OUTGOINGS (not profit)
If you work at home.
- We can claim a proportion of costs like:
- Heating, electricity, council tax, mortgage interest, internet and telephone use, you’ll need to find a reasonable method of dividing your costs, e.g by the number of rooms you use of business or the amount of time you spend working from home.
Desk takes up to 25 percent of room, desk space. We can say this is our work space.
Workplace pension – obligation to employees to pay pensions (set up scheme).
The tax year
Ends on 5 APRIL, Paper based returns: 31st cover
Online return: 31 January following year
Online or paper need to pay an tax due by 31 January
If late…you will be charged interest…
Online is more secure, calculations done, tax due or owned, receipt.
TAX AND INCOME
Personal allowance is 11,00
Working tax credit if working 16 hours per week (if need help).
Basic amount is £1,960
16-24 with a child or have disability
Over 25 with or without child
HMRC WEBSITE for more indepth details on this issue.
Sector specific – business resources
- Creative skillset
- Animated women
- Animation UK
(how to protect ourselves when posting our work online.) OUR RIGHTS
- Intellectual Property (we own the IP)
- Copyright (we have created – not an idea)
- Lasts life time plus 70 years we can pass it
- Trademark (pay 5 years and then renew it)
- Design right, 2d and 3d objects
- Patern (unique design); no one else can produce this software
We have been ripped off. EVIDENCE all the sketches, Emailed it. Stolen our copyright.