Self Assessment help (freelancing)

jurassicpartridge

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

Dazed_and_C0nfused

jurassicpartridge said:

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

What do you mean by "earned"?

Is that your business turnover or profit?

[Deleted User]

If that was your turnover you would be silly not to claim the trading allowance of £1000, reducing your PROFIT to £500 and tax due to £100. 

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

jurassicpartridge

Dazed_and_C0nfused said:

jurassicpartridge said:

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

What do you mean by "earned"?

Is that your business turnover or profit?

Hi there, that's the 'profit' - I'm a freelance journalist so there aren't any outgoings so it's all profit, I guess!

Dazed_and_C0nfused

jurassicpartridge said:

Dazed_and_C0nfused said:

jurassicpartridge said:

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

What do you mean by "earned"?

Is that your business turnover or profit?

Hi there, that's the 'profit' - I'm a freelance journalist so there aren't any outgoings so it's all profit, I guess!

If there aren't any genuine expenses then why wouldn't you claim the Trading Allowance 🤔

jurassicpartridge

Dazed_and_C0nfused said:

jurassicpartridge said:

Dazed_and_C0nfused said:

jurassicpartridge said:

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

What do you mean by "earned"?

Is that your business turnover or profit?

Hi there, that's the 'profit' - I'm a freelance journalist so there aren't any outgoings so it's all profit, I guess!

If there aren't any genuine expenses then why wouldn't you claim the Trading Allowance 🤔

I didn't know you could do this! I suppose it's obvious really... do I need to just put £500 in the turnover/profit bit of the self-assessment then?

Dazed_and_C0nfused

jurassicpartridge said:

Dazed_and_C0nfused said:

jurassicpartridge said:

Dazed_and_C0nfused said:

jurassicpartridge said:

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

What do you mean by "earned"?

Is that your business turnover or profit?

Hi there, that's the 'profit' - I'm a freelance journalist so there aren't any outgoings so it's all profit, I guess!

If there aren't any genuine expenses then why wouldn't you claim the Trading Allowance 🤔

I didn't know you could do this! I suppose it's obvious really... do I need to just put £500 in the turnover/profit bit of the self-assessment then?

No, turnover and profit are totally different things.

Turnover is unchanged but you then claim the Trading Allowance giving a lower profit.

[Deleted User]

jurassicpartridge said:

Dazed_and_C0nfused said:

jurassicpartridge said:

Dazed_and_C0nfused said:

jurassicpartridge said:

I just filled out my tax return for 2022/23. I earned £1500 in freelance earnings (on top of the 20k for my full-time job), and owe about £300 in tax. Is there anything I can do to reduce this? Does it seem like the correct figure? Any help would be useful   

What do you mean by "earned"?

Is that your business turnover or profit?

Hi there, that's the 'profit' - I'm a freelance journalist so there aren't any outgoings so it's all profit, I guess!

If there aren't any genuine expenses then why wouldn't you claim the Trading Allowance 🤔

I didn't know you could do this! I suppose it's obvious really... do I need to just put £500 in the turnover/profit bit of the self-assessment then?

No. You declare your turnover as £1500 because that’s what it is. You fill in the trading income allowance box with £1000. See below - box 10.1

Thats it.

https://assets.publishing.service.gov.uk/media/642bf41e7de82b000c313533/SA103S_2023.pdf

uknick

Another example of how paying an accountant/business adviser a couple of hundred £ at the start of a business for a consultation could save £000s in the long run,