Beginner designer w/ some freelance jobs


Thorhill

New Member
Hello :) I have some freelance jobs from family & friends that I will be paid for - I assumed I would pay tax on these as they count as income (I have a part time job that pays me 500-600 a month on top of this) and was a bit confused about the taxation side of this - will I actually pay any? I've had a look at this salary tool and put my monthly wages in and it's saying I'm not paying any tax - can someone confirm this for me as I'm not 100% confident if that's right or not and can't find much about having 2 incomes at once and how that affects tax. Hopefully it's a super simple explanation and I'm over-complicating it in my head!

Thank you so much in advance :)
 

scotty

Moderator
Staff member
Hey Thorhill,

Tax, numbers, accounts and stuff aren't really my thing so not really qualified to advise but it may help if you state which country you're in as tax laws vary.

I was under the assumption that (in the UK) the tax free allowance was £11,850.
 

Levi

Moderator
Staff member
First thing - I'm not an accountant so don't take this as gospel.

Not that I have '2 jobs' but pretty sure you'll need to register with HMRC for the freelance work, then fill in all the forms as required which 'should' take into account any paye income when you fill in your tax returns at the end of the financial year (I'd try to stick with the april/april dates). When you do your returns it will then tell you how much national insurance and tax you'll need to pay. I'm assuming you're not going or earning enough to go vat registered so that's nothing to worry over at the moment.

If you want 100% accurate answers just give HMRC a quick ring on one of the advice lines, this sort of situation is basically what it's there for :).
 

Paul Murray

Moderator
Staff member
You need to register as self employed with HMRC and declare it as income alongside your PAYE earnings. As far as I'm aware you can't just include it in the earnings of your part time job sice it's a separate source of income. The money and sources all needs to be accounted for. You fill in a tax return each year and there's an option to also include arnings from other sources, such as a part-time job.

As for whether or not you will pay tax, it's unlikely if it's a small amount, you're taxed on your profit once you're earning more than (I think) £10k after expenses. You can offset your earnings against businesses expenses (such as software costs) to bring your actual profits down each financial year. So if you earned £12,000 from self-eomplyed work, but you spent £6000 on business expenses, your actual profit would be £6000 and you wouldn't pay tax on that. You're still expected to pay income tax each year though.
 
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