Ask FreelanceSwitch #21: Impression Management, Self-Employment Tax

In this issue of Ask FreelanceSwitch, Travis King and Thursday Bram look at how to impress and when to register your business.

Ask FreelanceSwitch is a regular column here that allows us to help beginners get a grip on freelancing. If you have a question about freelancing that you want answered, send an email to askfreelanceswitch@gmail.com.

Let’s make it happen.

Question #1

I am new to freelance world, how do I talk to client face to face and impress them?

-Swetha

Thursday: Talking to clients face to face can be a tough experience — especially for a new freelancer. It’s important to be confident in your work and your ideas before you even go to your first meeting. That means being as prepared as possible. Research the client you’re meeting with — what sort of work do they do, what styles do they use on their website — you want to know as much as possible so that you can tailor your conversation specifically to the client you’re talking to.

You need to look like a professional. That may not mean a suit and tie, but you need to put some thought and care into your wardrobe.
Don’t forget that there are factors other than your personal appearance at play here as well: how your portfolio looks, along with any presentation materials you’ve brought along, is an important consideration for how professional you look.

If you’re not comfortable with the idea of meeting face to face, it may be useful to run through some practice meetings. Get a friend to pretend to be a client, sit down with him and go through what you’re planning to say in your meeting. Have your friend ask as many questions as possible (preferably ones you aren’t expecting) so you can get some practice in on answering questions on the fly as well.

Travis: Impression management is never easy Swetha. By nature, I’m a very impressive person. When I walk into a room people turn and say “Who’s that?” Then I say “Vicki Vale!”

That probably won’t work for you.

So here’s some better advice. The best way to make a great first impression is to dress well and be confident. First time meetings usually come down to two questions: “Does this guy look like he knows what he’s doing?”, and “Can we trust him to get the job done?” So how you look and how you talk goes a long way in answering those questions.

If you truly know your stuff then you’re halfway there. Now you just have to say it without looking the fool. So, practice like Thursday suggested, and get comfortable with some of the questions that may come up. If you’re surprised with a question from left field – before you open your big mouth – stop, think and formulate your answer. Talking before you’ve thought out the answer usually leads to verbal diarrhea. And that’s never pretty.

Question #2

I live in the UK and I’m new to freelancing. I plan only to be doing part-time freelance as I have a full time job (as a web developer) so I can work evenings and weekends.

Do I have to register as a business? For tax etc.?

-Carl

Thursday: I’m based in the U.S, so I asked Andy Hayes, a freelance writer based in Edinburgh, for more information. Here’s what Andy had to say on self-employment tax: “You can hang up your shingle and open up shop without registering as a sole trader, if you plan on working just on the side and will report your income as an additional income to an employer who’s withholding your tax. If you are going to be full time freelance, you’ll need to register with HRMC so that you can pay your national insurance contributions and so they know you’ll be reporting your own taxation (’self-assessment’). The process is simple, but I suggest you look at the free Working for Yourself guide to help introduce you to the process and make sure you complete everything required.”

As always, it’s important to talk to a local professional about your own specific situation. An accountant can tell you if your income is to the point where you need to look at how to improve your tax situation and similar considerations that may impact your business decisions.

Travis: Ahh taxes. For most freelancers taxes have about as much appeal as a hard punch to the soft bits. So that’s why I always recommend talking to a qualified local accountant.

Now talking to an accountant probably has as much appeal as a swift kick to the bruisey bits, but it must be done. Every country is different and tax laws bore people to tears, so you’re best to get a list of questions together and pay for an hour of an accountant’s time. Then you’ll know for sure whether you want to register a business or report it as additional income.

If the UK is anything like Canada, it doesn’t cost much money to register a business name. So if you’re planning on taking this freelance thing seriously, I don’t see why you wouldn’t want to do it under a business name.

But don’t take my word for it. Head over to your accountant and tell him Viki Vale sent you.

Send in your freelancing questions to askfreelanceswitch@gmail.com.