Whether you run an established business or are just starting out, using freelancers is a great way to get short term projects completed or help with ad hoc work without committing to a full time member of staff.
However, as with paying any supplier, there are things you should be aware of when it comes to paying your freelancer:
- You must receive an invoice detailing your freelancers name and address, as well as the agreed amount and any VAT element;
- You should request your Freelancers National Insurance number to be included on their invoice. In the event of an inspection by the Tax Man, they may choose to look at your freelancers invoices and take their details;
- You can pay your freelancer by cheque or bank transfer, whichever suits.
- Your freelance worked may have agreed payment terms up front or included these on their invoice, so you should pay in accordance with these terms. Legally, all invoices should be paid within 30 days if no payment terms are officially noted.