I have another scenario too. While away in Spain visiting a friend I took my laptop with me worked on 2 projects. One was for a UK based client, the other was in the USA. Does this make any difference or am I just clutching at straws here?
Ever since July 2006 when I left my full-time employment, I have been studying at home with the goal to become a freelance web-designer. I have been living with my girlfriend all this time and have not claimed any benefits at all. Things are picking up now, but in the tax year ending October 2006 I only worked on 5 jobs which totaled about £1400. My outgoings are way higher than my income as I needed to buy a PC and software and train myself.
Now the problem: At no point in time did I register myself as self employed and I have not paid TAX, VAT or NI. Is it inevitable that I will be fined, even though my income is below peanuts? Does anyone have any advise on what should do?
I'm a newbie freelance UK based web-designer with the occasional overseas client. All my work is done here and I wondered if anyone knows what I need to do about money & taxes.
I only had 2 such jobs last tax year, but these will hopefully be the first of many. One was a very small job of one day for $300/£150 and the client was based in the USA. The other was also based in the USA and the job took me two weeks but I only charged them peanuts ($100).
Does anyone know what the tax laws are surrounding Internet-based work for overseas clients?
Thanks,
Julian
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