Being self-employed means taking on risks and costs that you don’t have when you work for someone else. You’re responsible for getting customers and generating income, for constantly proving the value of your product or service. You also have to pay the phone and internet bills you incur to get and keep those customers, the travel expenses to meet with them and the liability insurance in case they sue you.
Many freelancers work from home because it is more cost-effective and it provides individuals with more productivity as they are in the comfort of their own homes. Working from home can also generate a significant amount of business expenses that can help you reduce your taxes.
When determining whether or not to expense the office portion of your room, it is important to ask yourself if the space was used regularly and exclusively for business. If so, then it can be considered tax deductible. A few common expenses that you can consider expensing is the proportionate amount of your utility bill, cable and Internet, and other costs associated with the monthly fees of your home.
Any person earning income from any source is liable to pay income tax as per the tax rates prescribed by the HMRC. While computing the income on which tax is to be paid, the total of all Incomes earned by a Blogger is to be taken into account. You are requested to note that Income Tax is not payable on the Total Revenue earned but is payable on the Total Income earned. Total Revenue is the Gross Amount received and Total Income is the amount earned after Depreciation and Payment of Expenses incurred for the purpose of earning the Revenue.
So as a freelancer you have to manage several tasks that’s why you need to hire an accountant in London to manage all your tax-related issues. A freelance accountant in Aberdeen relieves that burden so you can focus on what you do best: leading and growing your business.