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| *Ostroff, Fair and Company>>>United Kingdom Taxes |
Freelance work alongside full time job? |
Hi, I have a full time job and I am looking to do some freelance web development work. How do I go about declaring this? do i invoice the client and then declare my tax. I do not really want to set up a business just yet. Thanks No way round it I'm afraid - you do have to pay tax on it. You don't need to do anything complicated like set up a company- HMRC (new name for Inland Revenue) will treat you as a sole trader - this means that you are trading on your own (you can have employees) for profit. You should invoice your clients and keep full records of all expenses as many of these will be tax deductible. HMRC website is now really helpful and they are keen to help folk like you to set up correctly rather than risk high penalties later. The link below takes you to a booklet which explains what to do when you are registering your business with HMRC. You can also pop into your local tax office and they'll give you more leaflets, advice and can sign you up for a course to help. Good luck! Source(s): http://www.hmrc.gov.uk/leaflets/se1.pdf... try this site http://beta.bitwine.com/signup/sp... it's free to join well in most of the countries side job isnt allowed read the terms and conditions of the firm your working in this will help you-free useful articles and tips on almost any topic-http://www.free-articles.blogspot.com... Whoever you do the work for may keep you on the payroll as an independent contractor. In that case you probably wouldn't need to invoice the client. If the firm you work for has their stuff together, they will probably issue you a 1099 at the end of the year showing your "non-employee compensation". You would report this amount on your 1040 as other income, it would be subject to self employment tax. You should make estimate payments to the IRS through out the year to insure that you do not incur underpayment penalties, especially since 1099s don't always have withholding for taxes. |
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