Freelance with Full Time Job
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republicofheaven
Posts: 25 Forumite
Hello!
I work full time and have recently taken up a bit of freelance writing. My tax for my main job is all above board, however, I've read for my freelance work I need to register as self employed with HMRC and fill out a tax return each year. Does anyone know which form I'd need to fill out for this? I've searched around but am a little lost and confused by it all. Will the tax I pay on my freelance work affect the tax I pay for my main employment, or is it all kept separate?
Thanks in advance for any help and advice
I work full time and have recently taken up a bit of freelance writing. My tax for my main job is all above board, however, I've read for my freelance work I need to register as self employed with HMRC and fill out a tax return each year. Does anyone know which form I'd need to fill out for this? I've searched around but am a little lost and confused by it all. Will the tax I pay on my freelance work affect the tax I pay for my main employment, or is it all kept separate?
Thanks in advance for any help and advice
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Comments
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You should register as self employed, but there should be no effect on the tax you pay from your main job. Your tax free allowance isn't strictly linked to one job, it's what HMRC allow you to earn before paying tax.
As a self employed person it's sensible to put around 30% of your income aside to cover the tax payments. (or more if you think it will push you into the higher bracket).
In effect HMRC will write to you and tell you what you owe, once you submitted self assessment. Remember that for earning april 2019 - march 2020, you self assess after march 2020; you can deduct expenses.0 -
Thank you I've now registered as self employed - to be honest, I only earn around £100 a month for my freelance work, so not huge amounts of money - just want to ensure I have everything above board and don't end up paying loads of additional tax for my 9-5 job. 0
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republicofheaven wrote: »Thank you I've now registered as self employed - to be honest, I only earn around £100 a month for my freelance work, so not huge amounts of money - just want to ensure I have everything above board and don't end up paying loads of additional tax for my 9-5 job.
Tax is much simpler than people think.
Your employer in effect does you a favour by working out the tax for you when you work on PAYE.
In effect - to keep it simple:
You earn 22500 in your main job. The employer uses your tax free allowance for the first 12500 (spread over the year) and you pay tax on the remaining 10000 - 20%, so 2000 tax paid, again spread over the year.
You separately earn 1200 as self employed. So 1200 a year, you owe 20% of that, so £240, to the taxman. The reason it is a flat 20%, is because you've already used up your tax free allowance. (obviously this may change if you have expenses to deduct, but for simplicity)
The net result is basically the same.0 -
The first £1000 of your self employed income can probably be tax free - check here https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-incomeBut a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Don't forget that if you have bought any equipment specifically for your freelance work e.g. computer, printer, stationary etc, these costs are considered to be expenses and can be taken off your taxable income from it. Keep all receipts.0
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