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How do I pay tax for freelancing? [closed]
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I'm a freelance web designer (well starting up) and was wondering do I pay tax and how do I do it? I work full time as a IT apprentice if that's of any relevance. I'm completely new to everything and I don't know where to start with research or anything like that so any help is help if that makes sense.
I plan do be a freelancer in the UK
Any help would be appreciated :)
united-kingdom freelancing taxes
edited Aug 12 '14 at 10:35
Nigel Harper
22016
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
closed as off-topic by gnat, Vietnhi Phuvan, Elysian Fields♦, Joe Strazzere, Jim G. Aug 12 '14 at 11:56
- This question does not appear to be about the workplace within the scope defined in the help center.
suggest improvements |Â
up vote
-4
down vote
favorite
I'm a freelance web designer (well starting up) and was wondering do I pay tax and how do I do it? I work full time as a IT apprentice if that's of any relevance. I'm completely new to everything and I don't know where to start with research or anything like that so any help is help if that makes sense.
I plan do be a freelancer in the UK
Any help would be appreciated :)
united-kingdom freelancing taxes
edited Aug 12 '14 at 10:35
Nigel Harper
22016
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
closed as off-topic by gnat, Vietnhi Phuvan, Elysian Fields♦, Joe Strazzere, Jim G. Aug 12 '14 at 11:56
- This question does not appear to be about the workplace within the scope defined in the help center.
Sharing your research helps everyone. Tell us what you've tried and why it didn’t meet your needs. This demonstrates that you’ve taken the time to try to help yourself, it saves us from reiterating obvious answers, and most of all it helps you get a more specific and relevant answer. Also see How to Ask
– gnat
Aug 12 '14 at 9:11
I'm not familiar with freelancing.se but this might also be a fit for Personal Finance - I answered a similar question there a while ago.
– Nigel Harper
Aug 12 '14 at 10:23
2
Hey Trey, this question is a bit too broad for Freelancing SE as it stands. Stack Exchange isn't a "explain everything to me" kind of site, but I think you can search some of the questions on taxes on Freelancing SE and then search your own locale's tax laws on the Web. This will give you a little bit better place to start when you post your question on Freelancing SE. Hope this helps.
– jmort253♦
Aug 12 '14 at 14:10
Since this is marked as UK, start at hmrc.gov.uk (Her Majesty's Revenue & Customs) and search for self employed - if you just want to go self employed, it's all explained in rather simple English, and quite easy to handle without any help.
– gnasher729
Aug 12 '14 at 21:28
suggest improvements |Â
up vote
-4
down vote
favorite
up vote
-4
down vote
favorite
I'm a freelance web designer (well starting up) and was wondering do I pay tax and how do I do it? I work full time as a IT apprentice if that's of any relevance. I'm completely new to everything and I don't know where to start with research or anything like that so any help is help if that makes sense.
I plan do be a freelancer in the UK
Any help would be appreciated :)
united-kingdom freelancing taxes
edited Aug 12 '14 at 10:35
Nigel Harper
22016
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
I'm a freelance web designer (well starting up) and was wondering do I pay tax and how do I do it? I work full time as a IT apprentice if that's of any relevance. I'm completely new to everything and I don't know where to start with research or anything like that so any help is help if that makes sense.
I plan do be a freelancer in the UK
Any help would be appreciated :)
united-kingdom freelancing taxes
edited Aug 12 '14 at 10:35
Nigel Harper
22016
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
edited Aug 12 '14 at 10:35
Nigel Harper
22016
edited Aug 12 '14 at 10:35
Nigel Harper
22016
edited Aug 12 '14 at 10:35
Nigel Harper
22016
22016
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
asked Aug 12 '14 at 9:08
SomeAmbigiousUserName
956
956
closed as off-topic by gnat, Vietnhi Phuvan, Elysian Fields♦, Joe Strazzere, Jim G. Aug 12 '14 at 11:56
- This question does not appear to be about the workplace within the scope defined in the help center.
closed as off-topic by gnat, Vietnhi Phuvan, Elysian Fields♦, Joe Strazzere, Jim G. Aug 12 '14 at 11:56
- This question does not appear to be about the workplace within the scope defined in the help center.
Sharing your research helps everyone. Tell us what you've tried and why it didn’t meet your needs. This demonstrates that you’ve taken the time to try to help yourself, it saves us from reiterating obvious answers, and most of all it helps you get a more specific and relevant answer. Also see How to Ask
– gnat
Aug 12 '14 at 9:11
I'm not familiar with freelancing.se but this might also be a fit for Personal Finance - I answered a similar question there a while ago.
– Nigel Harper
Aug 12 '14 at 10:23
2
Hey Trey, this question is a bit too broad for Freelancing SE as it stands. Stack Exchange isn't a "explain everything to me" kind of site, but I think you can search some of the questions on taxes on Freelancing SE and then search your own locale's tax laws on the Web. This will give you a little bit better place to start when you post your question on Freelancing SE. Hope this helps.
– jmort253♦
Aug 12 '14 at 14:10
Since this is marked as UK, start at hmrc.gov.uk (Her Majesty's Revenue & Customs) and search for self employed - if you just want to go self employed, it's all explained in rather simple English, and quite easy to handle without any help.
– gnasher729
Aug 12 '14 at 21:28
suggest improvements |Â
Sharing your research helps everyone. Tell us what you've tried and why it didn’t meet your needs. This demonstrates that you’ve taken the time to try to help yourself, it saves us from reiterating obvious answers, and most of all it helps you get a more specific and relevant answer. Also see How to Ask
– gnat
Aug 12 '14 at 9:11
I'm not familiar with freelancing.se but this might also be a fit for Personal Finance - I answered a similar question there a while ago.
– Nigel Harper
Aug 12 '14 at 10:23
2
Hey Trey, this question is a bit too broad for Freelancing SE as it stands. Stack Exchange isn't a "explain everything to me" kind of site, but I think you can search some of the questions on taxes on Freelancing SE and then search your own locale's tax laws on the Web. This will give you a little bit better place to start when you post your question on Freelancing SE. Hope this helps.
– jmort253♦
Aug 12 '14 at 14:10
Since this is marked as UK, start at hmrc.gov.uk (Her Majesty's Revenue & Customs) and search for self employed - if you just want to go self employed, it's all explained in rather simple English, and quite easy to handle without any help.
– gnasher729
Aug 12 '14 at 21:28
Sharing your research helps everyone. Tell us what you've tried and why it didn’t meet your needs. This demonstrates that you’ve taken the time to try to help yourself, it saves us from reiterating obvious answers, and most of all it helps you get a more specific and relevant answer. Also see How to Ask
– gnat
Aug 12 '14 at 9:11
Sharing your research helps everyone. Tell us what you've tried and why it didn’t meet your needs. This demonstrates that you’ve taken the time to try to help yourself, it saves us from reiterating obvious answers, and most of all it helps you get a more specific and relevant answer. Also see How to Ask
– gnat
Aug 12 '14 at 9:11
I'm not familiar with freelancing.se but this might also be a fit for Personal Finance - I answered a similar question there a while ago.
– Nigel Harper
Aug 12 '14 at 10:23
I'm not familiar with freelancing.se but this might also be a fit for Personal Finance - I answered a similar question there a while ago.
– Nigel Harper
Aug 12 '14 at 10:23
2
2
Hey Trey, this question is a bit too broad for Freelancing SE as it stands. Stack Exchange isn't a "explain everything to me" kind of site, but I think you can search some of the questions on taxes on Freelancing SE and then search your own locale's tax laws on the Web. This will give you a little bit better place to start when you post your question on Freelancing SE. Hope this helps.
– jmort253♦
Aug 12 '14 at 14:10
Hey Trey, this question is a bit too broad for Freelancing SE as it stands. Stack Exchange isn't a "explain everything to me" kind of site, but I think you can search some of the questions on taxes on Freelancing SE and then search your own locale's tax laws on the Web. This will give you a little bit better place to start when you post your question on Freelancing SE. Hope this helps.
– jmort253♦
Aug 12 '14 at 14:10
Since this is marked as UK, start at hmrc.gov.uk (Her Majesty's Revenue & Customs) and search for self employed - if you just want to go self employed, it's all explained in rather simple English, and quite easy to handle without any help.
– gnasher729
Aug 12 '14 at 21:28
Since this is marked as UK, start at hmrc.gov.uk (Her Majesty's Revenue & Customs) and search for self employed - if you just want to go self employed, it's all explained in rather simple English, and quite easy to handle without any help.
– gnasher729
Aug 12 '14 at 21:28
suggest improvements |Â
1 Answer
1
active
oldest
votes
up vote
0
down vote
accepted
The problem with this question is that it is quite country-specific. For example, if you are in the UK and want to go for the most basic freelance arrangement ( as a Sole Trader, rather than setting up a company ) you simply have to register with the Inland Revenue and they will tell you what to do - you will get a regular ( quarterly? ) National Insurance bill and have to fill in a tax return and pay it annually. You should also be keeping all work-related receipts. By researching your tax allowance you can see how much you should be putting on one side.
However, if you are elsewhere in the world, the tax system will probably be similar in general but very different in detail. Just remember that it is in the interests of the tax authorities for you to do the right thing and so they should be very willing to try and help you- start by searching their websites or giving them a call.
answered Aug 12 '14 at 9:29
glenatron
20414
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
 |Â
show 1 more comment
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
0
down vote
accepted
The problem with this question is that it is quite country-specific. For example, if you are in the UK and want to go for the most basic freelance arrangement ( as a Sole Trader, rather than setting up a company ) you simply have to register with the Inland Revenue and they will tell you what to do - you will get a regular ( quarterly? ) National Insurance bill and have to fill in a tax return and pay it annually. You should also be keeping all work-related receipts. By researching your tax allowance you can see how much you should be putting on one side.
However, if you are elsewhere in the world, the tax system will probably be similar in general but very different in detail. Just remember that it is in the interests of the tax authorities for you to do the right thing and so they should be very willing to try and help you- start by searching their websites or giving them a call.
answered Aug 12 '14 at 9:29
glenatron
20414
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
 |Â
show 1 more comment
up vote
0
down vote
accepted
The problem with this question is that it is quite country-specific. For example, if you are in the UK and want to go for the most basic freelance arrangement ( as a Sole Trader, rather than setting up a company ) you simply have to register with the Inland Revenue and they will tell you what to do - you will get a regular ( quarterly? ) National Insurance bill and have to fill in a tax return and pay it annually. You should also be keeping all work-related receipts. By researching your tax allowance you can see how much you should be putting on one side.
However, if you are elsewhere in the world, the tax system will probably be similar in general but very different in detail. Just remember that it is in the interests of the tax authorities for you to do the right thing and so they should be very willing to try and help you- start by searching their websites or giving them a call.
answered Aug 12 '14 at 9:29
glenatron
20414
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
 |Â
show 1 more comment
up vote
0
down vote
accepted
up vote
0
down vote
accepted
The problem with this question is that it is quite country-specific. For example, if you are in the UK and want to go for the most basic freelance arrangement ( as a Sole Trader, rather than setting up a company ) you simply have to register with the Inland Revenue and they will tell you what to do - you will get a regular ( quarterly? ) National Insurance bill and have to fill in a tax return and pay it annually. You should also be keeping all work-related receipts. By researching your tax allowance you can see how much you should be putting on one side.
However, if you are elsewhere in the world, the tax system will probably be similar in general but very different in detail. Just remember that it is in the interests of the tax authorities for you to do the right thing and so they should be very willing to try and help you- start by searching their websites or giving them a call.
answered Aug 12 '14 at 9:29
glenatron
20414
The problem with this question is that it is quite country-specific. For example, if you are in the UK and want to go for the most basic freelance arrangement ( as a Sole Trader, rather than setting up a company ) you simply have to register with the Inland Revenue and they will tell you what to do - you will get a regular ( quarterly? ) National Insurance bill and have to fill in a tax return and pay it annually. You should also be keeping all work-related receipts. By researching your tax allowance you can see how much you should be putting on one side.
However, if you are elsewhere in the world, the tax system will probably be similar in general but very different in detail. Just remember that it is in the interests of the tax authorities for you to do the right thing and so they should be very willing to try and help you- start by searching their websites or giving them a call.
answered Aug 12 '14 at 9:29
glenatron
20414
edited Aug 12 '14 at 11:31
answered Aug 12 '14 at 9:29
glenatron
20414
answered Aug 12 '14 at 9:29
glenatron
20414
answered Aug 12 '14 at 9:29
glenatron
20414
20414
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
 |Â
show 1 more comment
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
Its a bit more complex than that there is at least 3 different ways to do this sole trader , umbrella company and via ones own company.
– Pepone
Aug 12 '14 at 10:34
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
You are correct, but the principles for knowing where to start are the same- find out what your options are from the tax authorities and decide what works for you. My assumption is that if you are at the point where you have no idea at all where to get started, you're probably not going to be in a place in terms of turnover where setting up a company is beneficial so this is summarising the Sole Trader option, I will edit to reflect that.
– glenatron
Aug 12 '14 at 11:30
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Unfortunately IR35 raises its ugly head for contractors in the IT space. Own company is better for tax reasons.
– Pepone
Aug 12 '14 at 11:37
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
Only if your income falls above a certain threshold- used to be around £75k as far as I recall - below that there isn't much difference. I thought IR35 was mostly about full time employees pretending to be contractors for tax reasons, so that if you're working for different employers ( i.e. you actually are a freelancer ) it doesn't make much difference.
– glenatron
Aug 12 '14 at 11:51
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
as afar as I know (I am a contractor in IT) there is no minimum for HMRC to look at it contractors in IT vis a vis IR35 its unfair but that is how it is.
– Pepone
Aug 12 '14 at 15:38
 |Â
show 1 more comment
Sharing your research helps everyone. Tell us what you've tried and why it didn’t meet your needs. This demonstrates that you’ve taken the time to try to help yourself, it saves us from reiterating obvious answers, and most of all it helps you get a more specific and relevant answer. Also see How to Ask
– gnat
Aug 12 '14 at 9:11
I'm not familiar with freelancing.se but this might also be a fit for Personal Finance - I answered a similar question there a while ago.
– Nigel Harper
Aug 12 '14 at 10:23
2
Hey Trey, this question is a bit too broad for Freelancing SE as it stands. Stack Exchange isn't a "explain everything to me" kind of site, but I think you can search some of the questions on taxes on Freelancing SE and then search your own locale's tax laws on the Web. This will give you a little bit better place to start when you post your question on Freelancing SE. Hope this helps.
– jmort253♦
Aug 12 '14 at 14:10
Since this is marked as UK, start at hmrc.gov.uk (Her Majesty's Revenue & Customs) and search for self employed - if you just want to go self employed, it's all explained in rather simple English, and quite easy to handle without any help.
– gnasher729
Aug 12 '14 at 21:28