Freelancer outsourcing work
alisson44
Posts: 3 Newbie
in Cutting tax
Hello,
I am a self-employed freelance writer and this is the first year I'm thinking about outsourcing work. In short, I have multiple clients who provide me with lots of work and I find myself needing help to complete it on time. I have a couple of other writers to outsource to and I was wondering how do I write off the money I pay them for their work? One of the main persons to whom I'd like to outsource is my husband, who's also a freelance writer. I need to mention that most transactions in my business are via PayPal. Is it enough to write off the PayPal transactions as expenses? Or do I need to do anything else?
Thanks,
Allison
I am a self-employed freelance writer and this is the first year I'm thinking about outsourcing work. In short, I have multiple clients who provide me with lots of work and I find myself needing help to complete it on time. I have a couple of other writers to outsource to and I was wondering how do I write off the money I pay them for their work? One of the main persons to whom I'd like to outsource is my husband, who's also a freelance writer. I need to mention that most transactions in my business are via PayPal. Is it enough to write off the PayPal transactions as expenses? Or do I need to do anything else?
Thanks,
Allison
0
Comments
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Are you a sole trader? If so, it is an allowable business expense.Who having known the diamond will concern himself with glass?
Rudyard Kipling0 -
Yes, I'm a sole trader. Do I need to get invoices from the writers?0
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Yes, as supporting evidence in case HMRC ever decide to enquire. You are using sub-contractors. Will your clients be happy about this?Who having known the diamond will concern himself with glass?
Rudyard Kipling0 -
Thank you for your reply. My clients are fine with it, and I'll be supervising/correcting the texts anyway. Wouldn't it look suspicious to get invoices from my husband, though? He has his own clients, but sometimes his work is slow, and I could use his help.0
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Sorry to but in. I'm about to start doing this too.
I'm not a sole trader (yet). Would I have to be one to be able to factor in the costs paid out to sub-contractors?
Thanks!0 -
Assuming that you are not going to create a limited company and you are not in the construction industry, you need to register with HMRC as self-employed once you have some definite work/sales. Legitimate business expenses can be offset against income to reduce your profit, which is what you pay tax on.Who having known the diamond will concern himself with glass?
Rudyard Kipling0 -
Thanks. I am looking into creating a limited company to pay less tax.
Although not sure if I earn enough to make it worthwhile - still doing the research.
Thanks.0 -
The same principle applies: legitimate business expenses can be offset against tax.
It is worth spending time exploring possibilities: if extra work will take you into a higher tax band, then a company might be best. However, you need proper accounting procedures.Who having known the diamond will concern himself with glass?
Rudyard Kipling0 -
Thanks, I will get in touch with some accountants.0
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