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Posted Thu, 11 Jan 2024 21:43:59 GMT by
I'm a freelance graphic designer and I work with overseas clients, like record labels in the USA, just on a 'work for hire' basis (i.e. the client pays my fee for one design, and that's our contract wrapped up). They more often than not pay via wire transfer, but sometimes via PayPal. I make the majority of my income through e-commerce (Etsy, Big Cartel etc.), which I declare as my main income, while my design commission fees are declared under 'other income' (as commissions are actually listed in the dropdown). Is this fine? Feels super trivial to ask, but just wanted to make sure I was doing the right thing. I feel there isn't much in the way of ultra specific tax-return advice available for this area of self employment, maybe because of its relative newness, so figured I should ask here. Thanks in advance!
Posted Wed, 17 Jan 2024 08:48:02 GMT by HMRC Admin 5

Your gross turnover is made up of the income from wire transfer and Paypal.  
Once your expenses are deducted, you have a net profit, that tax and NIC are calculated on.  
The tax return question: "Turnover - takings, fees, sales or money earned by your business:", covers all payments - cash, card, cheque or any other method fees, tips and commissions the value of any payments 'in kind', that is not payment by cheque or cash, for work done or goods sold.

Thank you

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