Running Your Own Web Design Company

Posted on Fri, 06 Apr 2007
 at 11:10:37

     It is a long term ambition of mine to set up and run my own web design company some time in the future when I have more experience and respect in the field, but I've always been unsure what the law states I have to do in the way of taxes etc. I was also unsure about using contracts with clients, so I asked on the Boagworld Forum.

     Several people responded - the most notable being Richard Quick (who's book "Web Design in Easy Steps", I review on this blog). He gave a very concise answer to my questions which I am very appreciative of. I thought some readers of this blog may find it useful too, so I have posted a link to the original post, and to just Richard's responses, which he too posted on his blog.

Boagworld Forum: Running Your Own Web Design Company.
Richard Quick's blog post.

To save you the time of clicking on all of the links I shall put a few quotes from the responses here for you. It really is worth reading the lot, however, as it's all very informative and highly useful.

On taxes
Tax wise, you have to fill in a self-assessment form once a year (any time before midnight on 31st January).

On contracts
Legally, when you do work with somebody you're under no obligation to sign a written contract. Simple verbal contract "do you want a website - it'll cost £500", "yes please", "ok, can I have a deposit", "here you go") will do.

However, it's not wise to work like this - as sooner or later somebody will turn round and say "I never signed anything - I'm not paying you".

On copyrights
Don't worry about this. Read up on it before you start your business - but basically, you own the copyright to any work you do unless you explicitly transfer it. I transfer all copyright to my clients once they pay the bill in full - and this is stated in my contracts. You don't have to though. Oh, and don't use other people's work in your own work (photos etc) unless you've paid to use it or can prove you've got a right to use it for free.

On accounting
When you get bigger you may want to consider using a local firm of accounts to do your book keeping and accountancy. However, this isn't a legal requirement until your turnover hits £5million and you're a limited company. By this time you'll be very, very happy.

On loans
If you're planning to go into business make sure you have a good credit rating. Never miss any credit card repayments or skip your council tax. You may only be 20 (say) now, but 4 years down the line it could make a big difference.

You shouldn't borrow money for longer than the lifetime of the asset. Eg. If you borrow money to buy a computer that you're gonna use for 2 years, don't take out a 5 year loan.

As I said above - I really highly recommend reading the entire post - I've missed out a lot.

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JamieKnight said...
Hiya, I think this is a good read, i have been lucky in that i have had three years experience with a web design company and have seen the innner workings. As i am only 17, alot of people do not take me seriosly, but often after they have seen my work or met with me, they are far more comfortable working with me. Due my autism i have a "unique" personility and i make use of this as a "brand". Somthing different is my way of looking at work, and i often try to find the simplist soulution, even if this is not the "normal" way. doing my Degree also helped... ^licks^ jammie & lion
...on Sat, 09 Jun 2007 at 12:00:38.

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