Declare freelance earnings?
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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
- caput580
taxes are designed only for the purpose of making your government stronger. if you want that, then pay taxes. i don't and i refuse to do so.
- migy0
this talk of tax gives me chest pains. January is always in my mind when the great Satan shall descend and demand all the money i made in the only three productive months of the year.
- doesnotexist0
simple answer: if you have a signed contract then yes report it.
- Dancer0
If you are sending invoices to companies then yes pay....
Mine is the other way round I am on the PAYE at a small agency that I do roughly 3 days a week for. On the other 2 days (& weekends) I do freelance work. I have just done my Tax return which had 4 separate sections.
My tax code for the PAYE is BR (=Basic Rate) so I am on a flat 20% for my entire earnings. I then get £4.7k allowance through my freelance... it helps me out the fact that tax is taken at Source of my monthly pay cheque.
Oh and I have never put my Tax Ref number on my invoices... should I start doing that??