Freelancer Rights When Taxed Under PAYE 13 May 2022 at 10:31AM in Employment, jobseeking & training 3 replies 61 views

WilliamCoomber

Hi,

I have worked for a large organisation for several years. I was employed as a freelancer, free to pick and choose my shifts. I was paid gross and therefore claimed mileage and expenses appropriately and submitted my self assessment in order to pay tax.

Recently, this organisation has been taxing me at source, under PAYE. I am still a freelancer working in the same way as before. Is this appropriate? And can I still claim mileage/expenses for tax relief via a self assessment for work I am no longer including in that self assessment?

Thanks

Sandtree

If its going via PAYE you are an employee for all intents and purposes... this presumably is in light of the IR35 regulation changes that came in last year for the private sector. 

Like any employee you can claim relief on expenses that your employer hasn't reimbursed you for, if you are already registered for self assessment you do it through that however if you're not and its under £2,500 a year you can do it online but have to register for self assessment if its over £2,500 per year.

As an employee you won't be able to claim expenses in relation to travel to your permanent place of work 

Jillanddy

We've had this for several years now - changes described by Sandtree hit the public sector back in 2014/15. 

DE_612183

you are now employed by the client - freelancer is a state of mind really not an actual type of working practice - before did you have your own Ltd Company? Did you work through and umbrella company? Have you got an actual contract with T&Cs from your "employer"?