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Advice needed on paying taxes - freelancing while working FT
Marguerite
Messages count : 5
Likes count : 0
Registration :
22 January 2009
Hi
This is my first post. I hope I am in the right place for this.
I am working full-time as a fashion designer in a company, earning about £18k a year. I have recently taken up freelancing as a graphic designer/illustrator, and my earnings vary a lot. So sometimes, I earn nothing a month or £60 a month or only lately, £350.
I registered to a few sites and also pay commission of at least £15 if I get any job.
I am also registered to a US website, it is very bad for money. (any low earnings soon disappear with the commission to pay to the site)
I started freelancing to build up my portfolio. But now I am wondering if it is worthy to carry on as a freelancer but I wish to do this correctly if I decide to do so, that is paying taxes etc.
Now my question is how do I go about for paying taxes for this extra earnings? What is my first step?
Anybody who is in a similar situation to mine, can please advise?
Thank you.
This is my first post. I hope I am in the right place for this.
I am working full-time as a fashion designer in a company, earning about £18k a year. I have recently taken up freelancing as a graphic designer/illustrator, and my earnings vary a lot. So sometimes, I earn nothing a month or £60 a month or only lately, £350.
I registered to a few sites and also pay commission of at least £15 if I get any job.
I am also registered to a US website, it is very bad for money. (any low earnings soon disappear with the commission to pay to the site)
I started freelancing to build up my portfolio. But now I am wondering if it is worthy to carry on as a freelancer but I wish to do this correctly if I decide to do so, that is paying taxes etc.
Now my question is how do I go about for paying taxes for this extra earnings? What is my first step?
Anybody who is in a similar situation to mine, can please advise?
Thank you.
- Contact in PM
sarahsrays
Messages count : 23Likes count : 0Registration : 8 December 2007Hello Marguerite
You need to register as self-employed with HMRC. Just google 'register self-employed' and you can sign up online. Then, you will pay taxes on your work wage as you do now but you will pay taxes on your self-employed earnings separately at the end of the tax year - so you need to keep some money back for that (about 25% of your freelance earnings).
I freelanced while working for a while and the money side of things isn't complicated, especially when you're not earning much freelance.
You are supposed to register as self-employed within two months of starting self-employed work I think.
Sarah - Contact in PM
Marguerite
Messages count : 5Likes count : 0Registration : 22 January 2009Thanks Sarah.
I had a look at the HMRC website and I am getting very worried now. It says to register within 3 months. I have been very silly and did not check about all this, as at first I was not very serious about freelancing, just thought about building up my portfolio, get some money from this whenever possible and was earning very little. It looks like I am in trouble and I don't know what to do now.
I started doing some work 5 months ago, on/off. I am afraid I will get a big penalty which is going to cost me more than what I earned so far from freelancing.
Any suggestions from anyone on how to make it right?
Should I take a break and start afresh in a few months, and register properly?
Also after registering, will I be paying more taxes for my full-time job? - Contact in PM
sarahsrays
Messages count : 23Likes count : 0Registration : 8 December 2007Hi Marguerite
I did wonder about that...However, I really wouldn't panic about it. I am sure there is a way around it and that it happens a lot. I don't know the answer but there are quite a lot of people on here who know more about this type of thing so one of them might be able to help.
I am pretty sure that you won't pay more tax on your full-time job. But again, there are some experts on here so hopefully someone will be able to give you some better advice.
Don't worry too much though.
Sarah - Contact in PM
simonsjdaccountancy
Messages count : 23Likes count : 0Registration : 29 November 2006Don't worry!!
Register now and the worst that can happen is they will fine you £100.
Marguerite, post: 9603 a écrit : Thanks Sarah.
I had a look at the HMRC website and I am getting very worried now. It says to register within 3 months. I have been very silly and did not check about all this, as at first I was not very serious about freelancing, just thought about building up my portfolio, get some money from this whenever possible and was earning very little. It looks like I am in trouble and I don't know what to do now.
I started doing some work 5 months ago, on/off. I am afraid I will get a big penalty which is going to cost me more than what I earned so far from freelancing.
Any suggestions from anyone on how to make it right?
Should I take a break and start afresh in a few months, and register properly?
Also after registering, will I be paying more taxes for my full-time job? - Contact in PM
Marguerite
Messages count : 5Likes count : 0Registration : 22 January 2009Waow, yes I do worry a lot.
Better get this sorted asap.
Thanks.