- Remember contracts are legal agreements between you and another party (helps protect you as a freelancer)
- It sets out details of what the parties expect of each other.
- Reduces the potential for a job to change beyond the brief.
- Allows you to get paid full/part time if they drop out.
- May be useful to seek legal guidance to ensure that the contract is sound.
Should include:
- The work to be undertaken
- Time frame to be completed in
- Project requirements
- Freelancing or an employee
- Payment - how are you going to get paid? When will you get paid?
- IP ownership
- Usage/resale rights/licensing
Stipulate:
- Number of days/hours
- Milestones
- Number of revisions to be before extra charges (as it's taking time away from other jobs etc)
- Kill agreement - what happens if the wheels fall off? (charge them by weeks, set fee)
- Make sure you're provided with all the right assets, info, logos, specialist software, access to servers (may mean online facilities or work remotely).
- Clear whether you're freelance or an employee
- You may be working to an hourly rate depending on job.
- Take part payment up front if possible (generally 30-50%)
- Make sure you include the payment terms (e.g. 30 working days/30 calendar days)
- Try make sure you receive payment before you hand over final file (not always possible) - watermark?
Sole Trader:
- Sole trader (60% of business set ups)
- Work by yourself
- Can enter a partnership with another
- Have a business name or own name
- Can keep your existing bank account
- All profits can be taken after tax
- Must buy national insurance liabilities
- Must set up a PAYE payroll and collect taxes from them
- Register for VAT if you get over £8500
Limited Company:
- More tax efficient
- You have to file annual accounts and fill cooperation tax accounts
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