Nixers and Invoices....

wheres me jumpa

Hey guys,

Im starting work on a site soon and its the first site I will be charging an up front payment and monthly payment their after. The client/customer has requested I submit an invoice for the payment and the monthlys.

Are there any tax implications/potential for trouble for a wee chappy like myself using invoices? This is a nixer on the side of my work.

Also I know its been asked here before but any furhter insights would be good. Should I charge a monthly fee or per update fee? Im worried that if I am asked to make minor changes that I wont actually charge for it and over a month it all adds up.

If I went per update, what would be a good rate/basis for charging?

Bananna man

I charge a flat mobthly fee, its alot less messey and most of the time they dont even need an updates done. From time to time you'll get someone taking advantage of your kindness and be asking for massive amounts of changes but overall it balancess out.

wheres me jumpa

Thanks Bananna Man, PM sent.

kjt

What I do is charge per month and then at the end of the month tot up how much work was done. It works out pretty well.

Best of luck

The Corinthian

wheres me jumpa wrote:

Are there any tax implications/potential for trouble for a wee chappy like myself using invoices? This is a nixer on the side of my work.

You are liable for income tax on your work. If you go over the VAT threshold per annum, then you’re also liable to collect VAT. Your invoice can in theory act as an effective paper trail to the Revenue Commissioners, but in practice no. Touch wood.

Your other consideration is conflict of interest with your existing job. If you work for a Web development firm there would be a clear conflict of interest and would probably be in breach of your employment contract, I would be very careful not to let your employer hear of your nixer.

Also I know its been asked here before but any furhter insights would be good. Should I charge a monthly fee or per update fee? Im worried that if I am asked to make minor changes that I wont actually charge for it and over a month it all adds up.

If I went per update, what would be a good rate/basis for charging?

One model I’ve seen is that you offer a SLA based upon a set number of hours bought on discount. For example, you offer a SLA that grants your client 8 hours per month at 80% of your standard rate as long as they sign up for 12 months. If they go over that - per month - they pay the full rate on the overspill.

wheres me jumpa

The Corinthian wrote:

One model I’ve seen is that you offer a SLA based upon a set number of hours bought on discount. For example, you offer a SLA that grants your client 8 hours per month at 80% of your standard rate as long as they sign up for 12 months. If they go over that - per month - they pay the full rate on the overspill.

Thats a clever/original way of doing it. Would it be worthwhile forming a company similar to what a contractor would do? This is a major project for myself and with two other similar projects in the pipeline perhaps its worth becoming more professional?

Im not even considering establishing a full time company just the paperwork in place for it.