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Starting in freelance?
Er, isn't there something like a £5000 threshold until which you don't get charged tax and don't have to 'report' earnings? I'd say cash (with local people), cheque with people who don't mind sending cheques, and for international clients (last resort as well, because of the amount of time it takes and the fees), use PayPal.
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Wordpress vs Learning PHP/MySQL
If it's mostly just static pages, you can setup something like Wordpress, edit the templates (which is pretty much copying and pasting the header and footer of your website, assuming they're consistent on each page, into a few files), and then copy and paste the content into new 'pages' created in the CMS system.
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Simple CMS
I think learning how to use Wordpress might work well for you, it's very simple and there's an extremely large community behind it.
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Heart Internet
I'd always be wary of the "unlimited" word, has anyone fallen foul of this or heard reports of people coming up against the usual fair usage policies?
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[Mac] What are your favorite OS X apps?
NetNewsWire for RSS; CyberDuck (with TextMate) for FTP/Text Editing, Coda for general web design, Adobe Fireworks for image editing.
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Looking For Feedback On New Plans
It does indeed look "too good to be true" - especially with it being UK based, it's difficult to see how you're able to offer those prices.
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PHP Navigation
If you don't want to code in all the possible pages, as in php_penguin's example, just make sure you have some error checking and don't use the data straight from the user input; make sure you check that it's looking for a locally stored file, for example.
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Is Wordpress any good as a simple CMS ?
It's great as a simple CMS to put pages together, and really quite easy to modify as well, not counting the number of plugins out there.
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Starting in freelance?
I started out just doing free projects for people, generally because they're great to build up some sort of portfolio. If you're lucky, friends then pass you on to other friends, at which point you can build up enough of a portfolio so that people will start using you. I'm nearly 18, and have been doing this properly for about a year alongside school, and now I'm applying for summer jobs on the basis of my freelance portfolio. I don't think age is such an issue really with web work - fair enough, there's the odd person that won't deal with you because of your age, but I think maturity, professionalism, and above all the quality of your work is what people will make the decisions on hiring you from, not your age.