Liam De Bolla
3D Character Animator
Freelance
Freelance Taxes Research
This is the research I gathered on freelance taxes, legal considerations and financial framework.
Most freelancers in the UK will be paid in gross which means before tax. This also means that the freelancer will have to tax the right amount of their income to the income tax and national insurance. National insurance is split into class 2 and 4. Class 2 is a fixed figure every month while class 4 is a percentage of profits each year. This means the freelancers income will have to be carefully planned in order to pay all the tax when required. There are websites to help calculate the amount of money that needs to be saved for the tax.
Freelancers also set up an emergency income reserve which is for when there is little work during the year. This reserve would typically hold three to six months of the freelancer’s earnings. Pensions arrangements for the freelancers will also have to be set up. Signing up to ‘Nest’ or a personal pension through a financial adviser are the options for a freelancer. When a freelancer is ill and unable to work, they do net get the same perks an employee would get which is a statutory sick pay. The freelancer will have to check if they qualify for the ‘Employment and Support Allowance’, which is income to a maximum of £108.15 a week. Freelancers may have to have ‘Income Protection Insurance’. This provides the freelancer with a tax-free income if they are not able to work due to illness or an accident. The cheapest plans start at £20-£25 a month which will provide the freelancer with £1,500 a month for six months.
https://www.theguardian.com/money/2014/nov/19/freelance-self-employed-how-survive
There is also a ‘self-employed ready reckoner’ that calculates the amount of your weekly or monthly income will be taxed. Below I used the example of £3000 monthly profit.
http://www.hmrc.gov.uk/tools/sa-ready-reckoner/calculator.htm
My Budget
From the workshop on finance, I was able to have a good understanding of budgeting myself as I was able to see what areas of my life, I spend too much money in. As an animator, there are software I need to purchase as a freelancer such as Maya and the Adobe Suit. Below are the links to the pricing of both software.
https://www.autodesk.co.uk/products/maya/overview
From this, I found out that I will spend £2337.44 a month when I live on my own, which is £28,049 a year. Including National Insurance of £2921.80 a month which brings it up to £35,062. This shows that the total income for an even balance is £35,062.
From the workshop, it was explained to me that on an average year, I will work 227 days. From this, I can work out my daily rate which is, £154.46. This can also work out my hourly wage which will be, £19.31 per hour. However, in the finance workshop, I was informed that as an individual with no experience in the industry, my hourly wage should be £13 per hour making the daily rate, £104 a day.
Overall, my ideal income is +£36,000 a year, my ideal daily rate is +£160 a day, and my ideal hourly rate is +£20 per hour.
I also researched what the common pay scales are for a 3D animator with knowledge in Maya is and I found out that the Market has a yearly range, within London, from £16,000 - £38,000 with people having no experience in the field. This shows that once I start in industry, my salary will be between these two figures.
The salary for this job has stayed stagnant but in the last year, there has been a slight increase in salary.
I also found some of the wages for jobs in my field, and more specifically the jobs at companies I am currently researching such as DNEG, Jellyfish Pictures, and Blue Zoo.
https://www.glassdoor.co.uk/Salaries/3d-animator-salary-SRCH_KO0,11.htm
Applying the 227 working days in a year to these wages from DNEG, Jellyfish Pictures, and Blue Zoo, I am able to work out their day rates and compare then to my own. An animator on £36,025 a year from DNEG will result in a day rate of £130.05. An animator on £24,000 a year from Jellyfish Pictures will result in a day rate of £86.64. Finally, an animator on £31,000 a year from DNEG will result in a day rate of £111. This is interesting as my ideal day rate is £160 which is higher than all three of these day rates. This means I will need to budget myself better in the future for when I start work in the industry.
Overall, from when I first work in industry, I will need to work on budgeting myself as the wage is not as high as the expenses I have on a yearly basis. I will need to start planning on what are the essentials, as well as what can be changed in my lifestyle to improve the budget. As I gain experience in this field, the salary will change which can allow me to have more freedom on my budget.
Businesses Costs
I decided to research the costs if I was going to start up an animation company and I found out some pricing information to maintaining a small business. Below ae the links to research I found to help me fill in the budget I would have to consider if I was to start up by own business.
https://www.fundera.com/blog/business-startup-costs
https://www.youtube.com/watch?v=J4oZcsQw7KQ
https://www.cityoflondon.gov.uk/business/business-rates/Pages/how-your-bill-is-calculated.aspx
https://www.insureon.com/small-business-insurance/general-liability/cost
https://www.businesselectricityprices.org.uk/cost-per-kwh/
https://www.virginmediabusiness.co.uk/connectivity/business-mobile/?
https://www.legalzoom.com/articles/cost-of-marketing-what-is-the-average-budget
https://www.exhibitsusa.com/trade-show-booths-and-conventions-FAQ
https://www.thetrainline.com/train-times/albany-park-to-london-charing-cross
https://smallbusiness.costhelper.com/accountants.html
https://priceithere.com/office-desk-prices/
https://www.cardswitcher.co.uk/2018/04/credit-card-charges-small-businesses-pay/
https://www.money.co.uk/current-accounts/how-business-current-accounts-work.htm
My Invoice
With the help of the finance workshop, I was able to understand the layout of an invoice as well as what information needs to be listed in this document. I also looked at some templates to see other alternatives regarding layout. Below is my design for my invoice.
https://www.and.co/free-invoice-templates/animation-invoice-template
