When you’re working freelance, calculating how much tax you should be paying can be tricky. We’ve partnered with Crunch, who offer specialist accounting services for freelancers, to help guide you through the maze.
Crunch have two webinars running tomorrow, where their experts will be on-hand to answer your queries, depending on whether you’re working as a sole trader, or you have your own limited company.
What taxes do I pay? A webinar for Sole Traders – REGISTER HERE
What taxes do I pay? A webinar for Limited Company directors – REGISTER HERE
Both webinars are free, so don’t miss your chance to have your questions answered by the experts.
Don’t forget, all ProductionBase members receive a 10% discount on Crunch accountancy packages for the first year, as part of your exclusive range of Member Discounts.
Starting out as a freelancer can be a daunting process, not least from a financial perspective. We’ve partnered with Crunch, who offer specialist accounting services for freelancers, to help guide you through the maze. In this article, we’ll take a quick look at pay and tax for freelancers working as sole traders.
How do I pay myself as a sole trader, and how much should I put aside for tax?
You don’t need us to tell you that everyone loves to get paid. When you’re a sole trader, though, what sounds like a simple concept can get a little tricky.
As far as the law is concerned, there’s no legal difference between you and your business when you become a sole trader. You receive the income and you pay the expenses – including the tax liability, which you pay as an individual. That’s why we always recommend you put some money aside to pay your taxes, as HMRC have very strict deadlines.
So, how much should you be putting aside for tax, and how do you go about getting your hard-earned cash from your business into your pocket? Let’s explore.
Knowing what you can claim as a business expense can be tricky. Should you be retaining those lunch receipts and train tickets? And what about your glasses, could they have been claimed as an expense, too?
No-one really enjoys filing their Self Assessment. It’s that unwanted chore that you put off until the last minute, before flying into a mad January panic when you realise time’s almost up. Our friends at Crunch, the online accounting specialists, take us through a few hints to help freelancers get through it.
It might not surprise you to know that, historically, Self Assessment deadline day (31st January each year) is an extremely busy day at the offices of HMRC. It also might not come as a surprise that they rake in millions from late-filing penalties every year.
Getting your documents together and filing early are the safest ways to avoid a Self Assessment headache. With that in mind, here are three ways you can get yourself ready for the Self Assessment deadline.
ProductionBase is extremely pleased to recommend Crunch – a company that has transformed the previously grey and stuffy world of expensive accounting into a quick and cost-effective process.
How it works:
- Unlike a traditional accountancy firm, Crunch is geared to your needs, not the accountant.
- They remove every single task so you’ll be able to focus on what you’re good at – making programmes.
- You’ll get your very own account manager – that is with you every step of the way.
- From the quick setup process or simple transfer from your old accountant, to looking after all that boring paperwork from HMRC and Companies House.
- You’ll have an expert accountant to talk to, precisely when you need them – especially when you know you are not being charged by the minute.
- They are there to answer all your accountancy and tax questions as well as checking everything you do is correct before it’s submitted.
- Designed for the non-accounting mind, its one of the easiest accounting systems available.
- You’ll be sending invoices in minutes, dropping in expenses and seeing the health of your business instantly.
To find out more, visit Crunch – Online Accounting.