Declare freelance earnings?
Declare freelance earnings?
Out of context: Reply #23
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- johnnnnyh0
MrMackem you're slighly wrong. You have a tax free allowance of £4.7K so some of that is taken out of your £20K - in other words your PAYE is taking 20% of £15.3K-ish. When you add the freelance earnings you're now earning £24K so you take off your tax free allowance and pay tax on the rest.
The real danger zone comes as you head into the mid £30K as you may then encounter higher rate tax.
Say you earn £37K and PAYE tax and you do your £4k freelance then 40% (yes no typo here four tee per cent) goes off to the tax man from your £4K.
That's the simple versio