As a FreeFlexer you are your own boss, but of course, responsibilities also come into play. Consider, for example, the fact that eventually you have to file your own tax returns, that you might be held accountable at the moment if you cause damage during a shift and that you are responsible for shifts when you’ve accepted them. In this article, we have listed the most important things for you.
Taxes
As a FreeFlexer, you are only required to register as a sole trader and file tax returns if you earned more than £1,000 from self-employment in one tax year. If so, registration is mandatory in the following tax year. After that, you must pay your income tax and National Insurance Contributions twice a year. You can read more about the taxes in this article.
(VAT tax returns are only required if taxable turnover exceeded £85,000 over the last 12 months.)
Income tax declaration
In addition to the annual income tax, which has to be filed before January 31st, FreeFlexers are also required to make payments on account mid-year, before July 31st (if you have earned more than £1,000). Payments on account are advance payments towards your tax bill, and are half your previous year’s tax bill.
The first tax requirement after registration as a sole trader could result in a high amount considering it amounts to the first full tax year and 50% of the ‘current’ one. The tax year starts on the 6th of April and ends on April 5th the next year. Here you can read more about the income tax declaration.
Failing to meet the deadline could result in a £100 fine, or more if the deadline is missed by more than 3 months.
Insurance
As a FreeFlexer you are insured in case of damages or accidents by default and for free, and if you worked more than 10 shifts, you are also covered in case of long-term illness. In collaboration with insurance partner Alicia Benefits, you are automatically provided with an extensive safety net to fall back on when things get tough. Read all about the liability insurance Alicia Benefits offers here.
Your applications
We recommend signing up for as many shifts as possible on our platform to increase the chances of getting work on your desired day. But please note that you’re responsible for your registration as long as it’s open. If you can't work anymore then cancel your application immediately. If you are accepted and you cancel when the cancellation term has passed, you will have to find a substitute through the platform.
Debtor risk
As explained in the terms and conditions of use, all payments are handled by an independent financing party, Finqle Ltd. Co. When you checkout from your shift, you have 2 options on how to get paid:
Direct payment:
For a fee of 2.9% of your invoice amount, you can opt for payment within 3 or 5 working days after approval of your checkout by the client. We advise you to always choose this option because this gives you the most certainty.Wait for payment client:
If you opt for the option in the checkout for 'Waiting for payment client', the debtor risk lies entirely with you. In most cases, clients have a payment term of 14 or 30 days*. The average payment term you’ll see during the checkout is an indication but no guarantee. It can happen that a client won’t pay an invoice within the payment term or not at all, this is your debtor risk. In these cases you’ll have to wait longer for your money, and you’ll never be certain about when to receive your money. That’s why this option is free of charge.
* In rare cases, the payment term may be 45 or 60 days. The number of days can be found in the assignment agreement.