What taxes do I have to pay as a freelancer?

The amount will depend on how much money you’ve made, the tax-free personal allowance and the tax bands are the same for self-employed and employed people The way you currently report the income is by completing a tax return form under the self assessment system.

Small profits threshold, Class 2 NICs and Class 4 NICs (sole traders) :

• Small profits threshold – £6,475 for 2020-21. You start paying Class 2 NICs if you earn more than this threshold
• Class 2 NICs – £3.05 per week for 2020-21
• Class 4 NICs thresholds and limits – the earnings threshold before you start paying is £9,500 for 2020-21. You pay 9 per cent of profits between £9,500 and £50,000 per year, plus 2 per cent of what you earn above that.

You can check https://www.gov.uk/tax-help to get help with tax.

Updated on: 28/02/2024