[Question] Freelancing for an overseas company

[IanF]

Hi Guys
Some advice please. My daughter is busy with interviews to work as a freelancer for a European company remotely while based here. She has asked me what is best to do ito of tax etc. Does she register a company here, if so what type of company. She wants to do this legally.

[Greig Whitton]

Is there any reason why she doesn't want to simply do this in her personal capacity? (i.e. register as a provisional taxpayer, assuming she isn't one already)

[IanF]

Is there any reason why she doesn't want to simply do this in her personal capacity? (i.e. register as a provisional taxpayer, assuming she isn't one already)

Hi Greig,
No reason just other colleagues she has say they have registered a company. My initial advise was to to go the "sole trader" route then if she doesn't like that she is not stuck with a company. But I can't see a reason for a company.

[Greig Whitton]

Without a strong reason for trading through a company, I would strongly recommend going the sole proprietor route. She can always register a company later if doing so is justified. But to incur that cost and hassle now when she is just starting out is, in my opinion, premature.

Tax optimisation is rarely a high priority issue when starting a new venture (even though many entrepreneurs treat it as such). Unless your daughter is expecting to make a crazy amount of money very soon, I wouldn't sweat the tax implications.

[IanF]

Thanks Greig