Being a freelance journo and tax

Former Member

Ok, so I'm in my final year of university and I've just been offered a freelance sub-editing job that may develop into a permanent post.

At the moment I'm being paid per article as opposed to by day but have spoken to my contacts at the NUJ about the fee and it's correct *hoorah!* and now I'm wondering about tax.

How the hell do I go about tax? I have no idea what it is etc. Why don't they teach you this stuff in school? We had a talk at university about it but it didn't make any sense.

Anybody a freelance journalist and know what I'm supposed to do?

Former Member

.

Former Member

Oooh thanks. I'm checking out that Taxaid now. I've not been paid as of yet and they're not taking my bank details till next week. It's all a bit confusing if you ask me. Makes you wonder why they don't cover this in PSE or something at school.

Ironically my mum's an accountant too. Haha

Thanks again!

Former Member

girl with sharp teeth wrote: »

If you're operating as a self employed freelancer then you'll need to register with HMRC within the first 3 months of starting. If I were you, I'd start outting your tax on one side every month so that when you get a bill at the end of the financial year you'll be able to pay it. You'll also have to pay National Insurance contributions. For self employed people there are 2 kinds, class 2 and class 4. Class 2 is a fixed rate of around £2.50 a week. Class 4 insurance you pay on your profits (whatever you have left over from paying your business costs).

There is a lovely organisation called Taxaid that can explain things if you get in a real muddle, but HMRC can be surprisingly helpful if you give them a call.

:yes: All really good stuff. If you can have a seperate bank account (preferably with a debit card for expenses) for your earnings and business related costs. HMRC can get a bit twitchy if everything goes through your main bank account you also use for day-to-day stuff. Keep your expenses receipts!!

I'd definatly agree with putting your tax aside. Makes it much easier when the you have to do your self assesment forms.

Former Member

FYI the number to call for registering as self employed with HMRC is 0845 915 4515