Freelance work - tax question

smokedog

smokedog

smokedog

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28 Jul 2004
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I'm currently doing some freelance work. It's only a one off thing and not really much money, a few hundred max.

I'll invoice the company I'm freelancing but I haven't got a business account. Is there a threshold for freelance work before being taxed?
 
Any income, employed or self employed, is added together and taxed at the appropriate rates. If the total is less than £5,225 you won't pay any tax (unless your tax code is different to most). You don't need a business account.

You should complete a tax return if working self employed.
 
Its better to declare it on a tax return and not be charged any tax than to not declare it and get a fine for £150 through the post.
 
Fake the invoice, and don't tell the tax man.

Never done it myself, but i know lots of people doing stuff on the side and they've never been found out. Always for less than a grand though. Wouldn't dream of doing it for 10's of thousands of course.
 
Self-employed earnings don't get added to employed earnings.
You could earn £100k working at HMV, and pay, say, 30% tax. But then make £2k being self employed and not pay any tax on that.
 
Last edited:
HMRC Website said:
The amount of contributions you have to pay will depend on whether you are an employed earner or self employed; and the amount you earn. There may be occasions when you may work for an employer and for yourself at the same time. In these instances you may have to pay more than one class of contribution.
Click to expand...
http://www.hmrc.gov.uk/nic/background-nic.htm

i.e You work for HMV, make £100k, pay Class 1 contributions.
You also make £2k being self employed and pay Class 2 contributions.

Because you Class 2 contributions are below the threshold, you therefore pay no tax on your Self-Employed earnings.

I accept that the grammar, and morality of the post may have been wrong but the facts are indeed correct.
 
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