Breakdown: What you need to know
"I've heard it said that people come into our lives for a reason, bringing something we must learn"
Enter SansDrama from stage right.... Okay okay, we're not quite offering Emerald City, but how about we start with what the yellow brick road to being a self-employed performer generally looks like?
STEP 1: REGISTERING AS SELF-EMPLOYED
First off… you need to register as self-employed (ideally before you do your first self-employed job). We have a handy step-by-step guide right over here.
STEP 2: THE 'INS' OF INCOME
Then you start working… and there’s TWO types of income: 1. Employed and 2. Self-employed. Check out our article to understand the difference.
STEP 3: THE 'OUTS' OF EXPENSES
Throughout the tax year, whenever you spend money on anything directly relating to your self-employed performing job, it is called an 'allowable business expense'. The total value of these expenses can be offset against your income to lower the amount of tax you pay at the end of the tax year. We've pulled together everything you need to know and all you have to do is click.
STEP 4: TAX RETURN TIME
For each year that you’re self-employed, you have to fill out a form called a tax return. You can do this either online or on paper (FYI – most people do online). In it, you will include all your income and a total figure of your 'allowable business expenses'. When the tax return is complete, it is used by the tax authorities to assess if you owe any tax to HMRC or are owed a tax rebate – where you get tax you have already paid back. We've got your step-by-step guide right here.
We've got you coveredWe've got a simple blog for each of these steps to guide you along your way, so if you're feeling confident head over to Step 1. But don't forget to check out our 'cheat sheet' for phrases you're going to come across.
Got that? Wicked. Time to register as self-employed and get your new career defying gravity. If it's all still gibberish or you've got questions, get in touch and we'll update the article to help you and everyone else.
"Think of what we could do - together!"
We're with you all the way, so you have a question or you're just confused then you can always get in touch! We don't bite (usually) and always love to hear from you!
Love Jo and James x