This is a difficult time for the industry, with many productions large and small delayed or cancelled, and thousands across the sector laid off. It’s an unprecedented situation, and a lack of financial support from the government has only added to the worry. When help was announced for businesses and employees last week, one major omission was support for the 15% of the UK workforce who are self-employed freelancers, including the majority of people working across the production sector.
Today, that was finally addressed by the government, with an announcement from chancellor Rishi Sunak.
What Support Has Been Announced For Freelancers?
Matching the package announced for full-time employees, self-employed people will now be able to have 80% of their wages covered by the government, up to a maximum of £2,500 per month. The amount paid will be based on average monthly profits over last three financial years. This support will last for 3 months initially.
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.
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.
With less than a month to go before changes to National Insurance (NI) come into force, it seems that many people working in the entertainment industry have been asking the same two questions: am I affected and, if so, is there anything that I can or should do?
Before we address these questions, let’s get an overview of the legislation.
Under the current system, those working in film, TV, theatre, radio and commercial production are treated as employed for NI purposes and self-employed for income tax purposes. This enables low-income earners to qualify for state benefits such as Jobseeker’s Allowance (JSA), which can offer vital income when between roles.
Forthcoming changes to the tax system could have serious financial implications for people working in film, TV, radio, theatre and commercial production. Tax and accountancy experts ClearSky Entertainment explain.
Under the current tax system actors, musicians, singers and other performers are treated as self-employed for taxation purposes, but employed for National Insurance (NI) purposes.
However, if proposed reforms go ahead, from 6th April 2014 every UK-based performer will be classed purely as self-employed.
The government’s move to repeal the so-called dual status follows a consultation by HM Revenue & Customs, in which an overwhelming majority (99.1%) of the 11,814 respondents supported simplification of the system.
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.