We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Becoming a freelance

I am about to retire but will continue to work part time for my former employer on a freelance basis. I doubt the amount so earned will be very large, probably £10k max.

I will have to get my head round tax issues. I understand that I can set stationery and other consumables against tax. That bit is easy.

I will be visiting various sites and also be using a room in my home where I already have all the equipment I need, though I might want to buy a new netbook or tablet for use when travelling. I also use that room and that equipment for my personal interests, which will eventually generate a small amount of royalties. Is any of this tax deductible?

I've looked over the HMRC for guidance but that is geared to serious business ventures rather than the kind of non commercial stuff I'll be doing.

Oh, and I'll also be PAYE as I will have my pension.

Comments

  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    It sounds to me like you will effectively be operating as a kind of sole trader, I'm pretty confident that HMRC will have relevant guidance, so either you need to do a more focused search or hope that somebody know the revelant documents and posts links for you.
  • densol_2
    densol_2 Posts: 1,189 Forumite
    I recommend a book by the Tax Cafe - it deals with everything you need to know about small business expenses. I bought it when I did my accounts and its excellent.

    Be careful of " exclusively " using a room at home for business. If its used 100% then that room 'could' be liable for business rates and CGT when you sell. Better to say room is 90% for business and use it 10% for maybe drying washing or something.
    Stuck on the carousel in Disneyland's Fantasyland :D

    I live under a bridge in England
    Been a member for ten years.
    Retired in 2015 ( ill health ) Actuary for legal services.
  • Savvy_Sue
    Savvy_Sue Posts: 47,442 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Also beware of claiming the whole cost of a new netbook / tablet for use when traveling, unless you never use it for personal 'stuff', even when traveling, but keep it exclusively for business. A % is fine, if you can guesstimate how much will be personal and how much business use!
    Signature removed for peace of mind
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.