We support a lot of different tax solutions. How you want to pay your taxes is completely up to you - we just need to know 😁
Inside your "Freelancer settings" you will find the view that you can see in the video above.
If you have been using Worksome for a while you might wonder why you are suddenly opted to "update your account" when creating your bill. Every UK freelancer at Worksome will now need to choose and add information to any of the above options.
The four options for UK freelancers are:
1. Limited company (PSC):
If you have a Personal Service Company, this option is for you. We will need your company reg. no, business name and your VAT no. if your company is registered for VAT. When you are creating a bill, you can always choose to add VAT or exclude it. In order to be paid VAT from Worksome, the VAT no. needs to be added in your business entity details.
2. Registered Sole Trader:
We will need your 10 digit Unique Tax Reference (UTR) number, your name and your VAT no. if you are registered for VAT. When you are creating a bill, you can always choose to add VAT or exclude it. In order to be paid VAT from Worksome, the VAT no. needs to be added in your business entity details.
You can find everything you need to know about being a Sole Trader @ Worksome here:
3. Umbrella company ☂️:
If you need to get paid as an employed contractor working under an Umbrella Company, this is the option for you. We will need the Umbrella's company name, their reg. no, their address and their VAT reg. no.
Please also make sure to add the umbrella company's bank details (not your own bank details) in the section "Bank details" so that we can pay the Umbrella company directly.
You can find everything you need to know about being paid via an Umbrella company @ Worksome here:
4. No setup yet:
If you are in the beginning of our freelancer career - you might not have a business setup yet.
If you’re starting a new self-employed business and expect your annual gross income to be no more than £1,000, you may not have to register. Your first £1,000 of income from self-employment is called your "trading allowance".
It is however technically possible to send bills worth more than £1,000 via Worksome after choosing "No set up yet" and it will be your personal responsibility as a freelancer to report income and pay your taxes end of fiscal year.
Please note that some clients will require you to have a set up. In those cases, we recommend you to set up as a sole trader as that is the easiest and quickest way to get up and running with a business entity set up.
If you consider working long term as a freelancer, Worksome suggests you to think about what business entity set up that will fit your career best. You can read more about being a sole trader or how to use an umbrella company via Worksome via the big blue buttons above in this article 💙
Please reach out to our Support team via the chat (click on the button in your right corner), email (email@example.com) or phone us (+44 203 868 7054) if you have any questions. We are not a big team of experienced and registered UK tax advisors - but we will always be happy to guide you in the right direction or share a story about what another freelancer in a similar situation as yours did 🤗