Business websites, client privacy and GDPR
The regulations regarding website users and client or customer privacy are constantly evolving. But the main things you need to think about will be:
- Cookie legislation (covering the acceptance of cookies by website visitors, which are used by a variety of website software including analytics, advertising etc)
- Privacy policy (the data collected, and how it will be used).
- Trade descriptions (presenting your products or services accurately)
- General Data Protection Regulation (covering the storage, protection and usage of client and customer personal data)
There are a variety of resources available depending on the platform you use for your business website. IPSE members can access a GDPR compliant privacy policy template among other useful resources, and you can find the latest information on UK GDPR guidance and requirements via the Information Commissioner’s Office.
It’s also worth knowing both how to avoid copyright infringement as a freelancer, so you can advise clients on how to avoid problems and ensure you don’t make any mistakes on your own website or social media. And also, how to tackle copyright infringement if someone copies your work, or client assets.
Having good standards of data security and privacy for yourself and your clients doesn’t just prevent any issues with GDPR. It also means you’ll be able to minimise disruption if anyone attempts to maliciously hack your website, any software provider you use is subject to a data leak, you lose your phone or laptop, or even have your home office broken into.
Best practice includes using unique, secure passwords for different accounts, maintaining antivirus and antimalware software, and using an encrypted virtual private network (VPN) if you’re connecting via public Wi-Fi or networks in a café, workspace or during your commute. If you just need to charge your devices from a public USB socket, consider investing in a cost-effective USB data blocker.
Invoices, late payments and tax
Whether you’re looking to become wealthy from self-employment, or want to build a sustainable income on your own terms, managing your finances and cash flow will be essential. And while we have a range of detailed advice on financial wellbeing, from saving money to taking out a mortgage as a freelancer, the three main areas for legal complications tend to be invoices, late payments and tax.
If you have contracts in place, invoicing should be relatively simple. There are a range of good free and paid invoicing apps and tools which can save you time and effort, but the key things to include are your business details, client details, the work completed, and your payment terms.
Late payments can be trickier. Especially if you don’t act promptly when a client fails to pay on time, as your original contacts may leave, or a company could have ceased trading since you originally did the work.
Payment dates must usually be within 30 days for public authorities or 60 days for private businesses, but you can set different terms if your client agrees. By default, the payment is deemed late 30 days after either an invoice has been received by the client or customer, or the goods and services have been delivered (if later than the invoice date).
Once that time has passed, you’re entitled to compensations, and to claim interest and debt recovery costs for up to five years in Scotland, and up to six years in England, Wales or Northern Ireland.
The first step for non-payment will usually be a friendly but firm reminder, and an explanation of the additional costs that will build up if the invoice isn’t settled promptly. But if that fails, you can then apply to Small Claims Court to recover the debt, and we have a detailed guide on dealing with late payments, including the process of taking legal action.
Assuming you’re bringing money into your business (and even if you’re not yet earning a profit), the other big financial stress for freelancers is tax. And making sure you’re not risking legal issues by failing to register as self-employed when you start working for yourself, filing information on time, and making the right payments.
We have an advice section dedicated to self-employed tax guidance, including whether you need to file a Self Assessment tax return, discovering what expenses you can claim if you’re working from home, and the changes coming as a result of Making Tax Digital for the self-employed.
The best way to ensure you’re able to avoid legal issues and deal with your tax obligations with the minimum of stress is to do your research and preparation as early in starting your business as possible.
It’s often worthwhile speaking to a specialist accountant or financial advisor when you’re setting up your new business and financial records. Having the right methods in place from the beginning is a lot easier than sorting things out retrospectively, and can save you a substantial amount of time and money.
One of the biggest fears is being subject to a tax dispute or investigation by HMRC. Fortunately, IPSE membership can include cover for both of these situations, including providing experts, and legal fees up to a cost of £100,000.
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