"When you're juggling multiple income streams, the most important habit to get into is to record every single payment you receive, no matter how small it is. HMRC requires you to declare all taxable income, even if it's just a couple of pounds. It's often the 'little bits on the side' that creative freelancers forget about, but these are the ones that are likely to cause the most problems if they're missed off a tax return."
"All income must be declared on your Self Assessment tax return, even if you're also in full-time employment and taxed through PAYE. HMRC doesn't separate your additional freelance income from your main job, and it all needs to be reported together, although you won't pay tax on the same money twice!"
"Creative freelancers, whether it's video, social media or PR freelancers, are wearing many hats; one day working for a client, the next day buying equipment needed to do the job. However, HMRC doesn't care how many streams you have; all they care about is that you declare them properly and on time."
Creative freelancers often juggle multiple income streams, increasing administrative burden and tax complexity. All freelance income must be recorded and declared on Self Assessment, including small side payments, even when also taxed through PAYE. HMRC aggregates freelance earnings with employment income for reporting, though tax is not paid twice. Consistent bookkeeping, recording every payment, and clearly categorising allowable business expenses reduce the risk of missed declarations and incorrect claims. Misclassifying expenses or omitting income can lead to problems on tax returns. Timely, accurate records and correct expense claims simplify compliance and minimise penalties.
Read at Creative Bloq
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