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Textbroker website and taxes

I have begun writing on Textbroker to earn some extra cash, but as it's pretty much freelance writing, the site says I need to declare myself self-employed (I am not employed by them), but I'm confused as to how it will affect my tax. I am only doing this in my spare time and expect to earn around £1500 so obviously I will need not be taxed, but I still need to register with them. I will also not have to pay national insurance contributions. However, this is not my only income. I am emloyed in a part-time job as well- do I need to tell them this? Also, when I leave university, I hope to have secured a teaching post (I study Primary Teaching), so what happens then, because then I will earn enough to pay tax and national insurance, but will that be automatically be deducted from my wages, and can I not pay tax on my freelance writing at the same time? I am just confused, somebody help me!

Reply 1

tulipfleur

The site to sign up for self-emplotment and low income states that basic state pension, bereavement benefits and maternity allowance could be affected. But obviously when I become a full-time teacher (but still writing as well) I do not want these to be affected, andmy full-time job will mean I pay tax and NI on that, but not on writing. Will my basic state pension bereavement benefits and maternity allowance still be affected or not?

Reply 2

Kater Murr

Original post by tulipfleur

Hi

I know this is a bit old, but nobody else has answered, so if you still want to know...

If you make any profits as a self-employed writer you will have to fill in a self assessment tax return at the end of the financial year (so that would be April 2014) in which you will declare your freelance income, interest on bank accounts, and your income from other jobs including the one you have mentioned. This will help the HMRC to calculate any tax that you may owe by taking your full, total income into consideration. By the sounds of it you won't owe any tax, but you have to fill in the self assessment form anyway.

You also need to register as self-employed sooner than that, and then you should also apply for a Small Earnings Exception Certificate; if you expect to earn under around £5500 per year from your self-employed work, you can apply for this certificate which will exempt you from having to pay Class 2 national insurance, which is a weekly fee of about £2.75.

With regard to your benefits, I obviously don't know the ins and outs of all of them, but they may be affected only while you're working freelance; once you've stopped doing this and you're a teacher, your benefits probably won't be affected in the same way. For the precise information about how each benefit is affected you'll need to read more about them, but if you're not expecting to need any of those allowances within the next couple of years then I don't think you need to worry.