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.