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Is there any way I can avoid paying BR tax on my freelance income?
Comments
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Thanks for all your replies.
wolfinsheepsclothing (et al): Thanks for your offer. My dad is a chartered accountant and he has already advised me that my hands are tied - to be be honest, in a way it's not too bad as I still have plenty to live on and save, and I will get any excess back at the end of the tax year anyway, it's not like I'm never going to see it again. I was really just hoping for an easy way out.
anniehanlon: I don't know their reasoning, but paying via payroll and classing us as 'casual employees' is standard practice for 99% of newspapers and magazines I work shifts for.
I usually work as a sub-editor, working shifts, rather than a writer. Sometimes I also write features and these tend not to be taxed at source (I save the tax money in a savings account in this case).
Jimmo: thanks for your detailed reply. I think you're right, it's a problem I will just have to live with. Not sure how to take your reference to casual workers as 'Mickey Mouses" though - I seem to be doing a good job to get repeat work and make a decent enough living!
Casual reporters and sub-editors are used by every newspaper and mag going, and they need us as they often don't need full-timers to get everything done.
I think I will carry on as I am, and see it as an elaborate way of saving each year - last year I got a lovely cheque back from the taxman in the end.0 -
As regards the Mickey Mouse thing, it really wasn’t a dig at you. Now I feel obliged to explain.
Many years ago employers were required to operate PAYE on the wages paid to employees but there was a get out for casual workers. Employers could engage casual workers and pay them without deductions but they had to report details to the taxman of the name and address of the casual employee and the total amount paid. Then the taxman would check that the casual employees were paying tax.
In those days Fleet Street was Fleet Street. Most of the Dailys printed the papers there and fleets of lorries delivered the papers to the railway stations to be distributed around the country.
All the packing and humping of papers onto the lorries was done by casuals and at the end of the shift an official of the newspaper would pay each of the casuals in cash requiring each one to sign for his payment giving his name and address.
Legend has it that hundreds, if not thousands of the casuals, signed for their money as Michael Mouse and gave a fictitious address.
That forced the taxman to tighten up and is probably the root cause of the system that now exists and means that you have very little chance of getting paid quickly without suffering tax deductions.0 -
A ha! I see. That's an interesting story.0
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