🔙How Freelancers Pay Taxes

If you are a sole trader, there are steps you need to take to ensure you pay the correct taxes.

👌The popular option for freelancers is submitting a Self-Assessment tax return online, with the deadline depending on the method chosen. Once the return is submitted, income taxes on freelance earnings must be paid through options such as direct deposit, online banking, or mail.
After submitting the tax return, a tax bill will detail the amount owed in income tax and national insurance that can be paid through various methods.

👌There is also an option to pay the tax bill using your tax code, but it's advised to avoid this if you do not want your employer to discover your self-employment status. If the tax bill exceeds £1,000, making advance payments may also be necessary based on income predictions for the following year.

👌Paying tax if you’re set up as a limited company
If you’re set up as a limited company, you will need to submit an annual Company Tax Return and pay Corporation Tax on your freelance earnings.

The deadline for filing this type of tax return is 12 months after the accounting period it covers has ended.

🔗Source

🛡Powered by V3V Ventures