Whether you're a full-time freelancer or just doing it to make some extra money on the side, your freelance income is taxable in the UK. You're in the right place to find out all you need to know about taxes, and the specific tax reliefs you may be able to claim.
untied — the UK's personal tax app — helps many freelancers and self-employed consultants take care of their taxes, making filing tax returns simple and easy for hosts just like you!
Do I have to declare my freelance income?
If you’re just dipping your toe in the water or this is a hobby, the good news is that HMRC doesn’t expect you to declare freelance or other income if the total for the year is less than £1,000.
However, if you earn more than this, the short answer is “yes”, HMRC does want to hear about it! However, that doesn’t necessarily mean you’ll pay tax on it...
Do freelancers have to pay tax?
Everyone is entitled to tax-free allowances, irrespective of what the income source is, whether it’s from employment, dividends, or income from a freelance project. And you’re also able to claim certain expenses. Nonetheless, this must all be declared on the annual self-assessment tax return.
What kind of expenses can I claim if I am a freelancer?
Your profit is the amount left over once you’ve added together your income and taken away the expenses or allowances that you can claim. If you’re a freelancer , the kind of expenses you can deduct if you pay for them yourself is quite extensive and could include:
- office costs, for example stationery or phone bills
- travel costs, for example fuel, parking, train or bus fares
- clothing expenses, for example uniforms
- things you buy to sell on, for example stock
- financial costs, for example insurance or bank charges
- advertising or marketing, for example website costs
- training courses related to your business, for example refresher courses
- A proportion of your costs for things like heating, electricity, internet and telephone use (or you could just use simplified expenses for this)
untied makes it very quick and easy to run through payments you’ve made from your bank accounts, and then tag and list those items that you want to claim as expenses.
Your taxes - untied
The rules do change from time to time. But the good news is with untied you don’t need to be a tax expert.
The app makes it easy to stay on top of your freelance income and expenses, prompting you to pay exactly what you owe and claim any tax relief you might be entitled to. It’s quick to use, automating repetitive tasks, freeing up your time to spend on your business, rather than on your taxes. You can save even more time by using the app to submit your end of year self-assessment to HMRC directly from your mobile phone. Handy as the 31 January submission deadline is fast approaching!
Sign up for a free trial now – www.untied.io