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Get personal answers from experts in Greenhouses.

I Am Freelancing In The Uk. Do I Need To Pay Taxes?

I've given up my teaching career due to my daughter's illness. I am now freelancing on the web full time. Do I need to declare myself as working full time and do I need to pay tax? What is the threshold?

Asked by Elizabeth Flynn on Jan 14, 2012

6 Answers

A Creative Dream   L2: Knoji Contributor   2 answers   +2 votes
This answer has +2 votes  by

You need to declare yourself as self-employed within 3 months of starting to work for yourself. It's not so complicated, and unless you make over a certain threshold (roughly 4000 a year iirc) you won't need to pay taxes, but if you don't register as self-employed the fines can be epic.

http://www.hmrc.gov.uk/leaflets/se1.pdf

It's a good start with plenty of information.

Posted on Jan 19, 2012
thestickman   L5: Knoji Authority (Moderator)   1,393 answers   +2,091 votes
This answer has +2 votes  by

There is something similar in the U.S., one can make up to 2000 and not have to pay tax on it. Not usre if they must declare it, but if it exceeds, it must be declared & assessed. Back in the 80's I worked several part-time jobs at the same time one year, one of which netted soemthing like $38.00 MORE than the $2000 threshold for this one day per week job, and thus had to declare it and it affected by taxable amount. fyi, in case a similar question for American earners is contemplated...

Posted on Feb 12, 2012
Alessia Cesana   L2: Knoji Contributor   1 answers   +1 votes
This answer has +1 votes  by

I cannot find where it is said you have to be over 4000£, here the basic rate is 0-35,000£: http://www.hmrc.gov.uk/incometax/basics.htm#1

 

 

Posted on Feb 12, 2012
Andrea Davies   L1: Knoji Member   1 answers   +0 votes
This answer has 0 votes  by

[Quote]You need to declare yourself as self-employed within 3 months of starting to work for yourself. It's not so complicated, and unless you make over a certain threshold (roughly 4000 a year iirc) you won't need to pay taxes, but if you don't register as self-employed the fines can be epic.[Quote]

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Posted on Feb 16, 2012
Amanda Wilkins   L5: Knoji Authority (Moderator)   160 answers   +70 votes
This answer has 0 votes  by

You need to start keeping accounts, basic will do, income one side and expenditure the other as you will have to submit your accounts to the taxman once a year.If writing is your only source of income it's best to get a chartered accountant as they know what allowances you are allowed.If you are a UK resident you need to pay your stamp as well. When I started freelancing I was advised to take out a private pension but I am born and bred in the UK. If you don't and you haven't paid enough contributions you won't get the State Pension when you retire.

Posted on Mar 21, 2012
Teresa Conti   L3: Knoji Expert   108 answers   +40 votes
This answer has 0 votes  by

Good heavens, I thought the US tax system was a mess.  Of course, we have the great alternative minimum tax (another separate income tax on the "rich") and the self employed have to pay double social security tax. 

Posted on Mar 26, 2012

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