Freelancing Work
Freelancing on top of my work, how do I pay my tax?
I live in the UK and own a design company. I'd like to do some freelance work on the side. Obviously, I'll need to pay tax on my earnings. How's the best way to do this? Do I raise an invoice and send it to my client who pays the full amount? What next? How do I inform and pay the Inland Revenue? I live in the UK....
You would need to keep books of account for all your income- in your case all your sales invoices. On top of this, you would have to start keeping records of all your expenses as well. So you record your income from freelancing, and deduct from this all your expenses which enable you to earn this income, i.e fuel used driving to customers, or purchases of paper to print on, etc. The "profit" you have left over is your taxable income. Find out what tax the tax percentage is in your country. In Zimbabwe, it is 30.9% of your profit.
You would inform the Inland Revenue what you are embarking on, and from there, you would fill out the relative tax returns required in your country.
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