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Posted Tue, 02 Jul 2024 15:09:16 GMT by Chanit Sutthichit
I started working full time for a restarant and get paid hourly from August - March In April I got promoted and get fixed pay 38k per year. I also do a small amount of freelance work for some side income but get paid per project and not monthly, it's around £700 per project and I have done 3 projects last year and another 2 projects this year. How do I pay tax for my freelance job? Or see what I owe atleast? I have sent a form and also put the details into the HMRC app but nothing has happened. I want to find out how to pay please, if you have an idea how to guide me, it would be much appreciated! Thank you so much!
Posted Fri, 05 Jul 2024 14:19:13 GMT by HMRC Admin 5 Response
Hi

This will be classed as self employment and you will need to declare the income in self assessment - What a sole trader is

Thank you
Posted Sat, 06 Jul 2024 17:16:16 GMT by megnani matinda
When you work both full-time and as a freelancer (self-employed), you are required to pay tax on both sources of income separately. Here’s a breakdown of how and where you pay taxes in each case: ### Full-Time Employment Income: 1. **Tax Deduction at Source (PAYE)**: - Your employer deducts income tax and National Insurance contributions (NICs) from your salary before paying you. - This tax is paid to HM Revenue and Customs (HMRC) on your behalf through the Pay As You Earn (PAYE) system. 2. **Annual Tax Return**: - At the end of the tax year (which runs from 6 April to 5 April), you may need to complete a Self-Assessment tax return if you have additional income or need to report other financial details to HMRC. ### Freelance Income (Self-Employed): 1. **Register as Self-Employed**: - If you earn income from freelance work, you need to register as self-employed with HMRC. You can do this online through the HMRC website. 2. **Pay Income Tax**: - You are responsible for calculating and paying income tax on your freelance income. This is typically done through your annual Self-Assessment tax return. - You need to report your income and deduct allowable business expenses to calculate your taxable profit. - Payment deadlines for income tax are usually by 31 January following the end of the tax year. 3. **National Insurance Contributions (NICs)**: - As a self-employed individual, you may also need to pay Class 2 and Class 4 NICs on your profits. - Class 2 NICs are usually paid annually through your Self-Assessment tax return. - Class 4 NICs are based on your profits and are also paid through your Self-Assessment tax return. ### Managing Both Incomes: - Keep detailed records of your freelance income and expenses. - Ensure you meet deadlines for both PAYE deductions (if applicable) and Self-Assessment tax returns. - Consider seeking advice from a tax advisor or accountant to ensure you're compliant with tax laws and to optimize your tax position. By managing your taxes effectively for both your full-time employment and freelance work, you can ensure you meet your obligations and avoid any penalties from HMRC.

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