Feb
07
2011
PAYE umbrella: Contractors warned about declaring freelance earnings
Posted by John Crawley
Contractors have been told that they need to make sure they declare any money they earn in a freelance capacity to the taxman.
An expert, replying to a question on ContractorUK.com, said that the income received from jobs on the side, no matter how small, is taxable.
They added that as it has not been taxed at the source then it needs to be reported to HMRC, which can be done through a self-assessment tax return.
"I would also recommend that you contact HMRC as soon as possible to advise them that you have started self-employment and the date you commenced [the work]. The tax authority's website provides some useful additional information. And based on the income level you mention, you should also look into the small earnings exception," the expert went on to say.
Recently, it was revealed that nearly seven million people, including contractors, filed their self-assessment tax returns online this year.
Contractors have been told that they need to make sure they declare any money they earn in a freelance capacity to the taxman.
An expert, replying to a question on ContractorUK.com, said that the income received from jobs on the side, no matter how small, is taxable.
They added that as it has not been taxed at the source then it needs to be reported to HMRC, which can be done through a self-assessment tax return.
"I would also recommend that you contact HMRC as soon as possible to advise them that you have started self-employment and the date you commenced [the work]. The tax authority's website provides some useful additional information. And based on the income level you mention, you should also look into the small earnings exception," the expert went on to say.
Recently, it was revealed that nearly seven million people, including contractors, filed their self-assessment tax returns online this year.