Q: My husband has been in full-time employment for many years and hasn’t had to deal with Self-Assessment Tax Returns until now. Recently, he started doing some freelance work alongside his job. What should he know about filing taxes for his freelance income, and are there any special considerations for someone in his position?
A: Many people are in the same boat and it’s important for him to understand how to handle his tax obligations.
Since he’s earning additional income from freelancing, he’ll need to report this on a Self-Assessment Tax Return if his earnings exceed £1,000. This threshold allows him to earn up to £1,000 from freelancing without needing to file a tax return for that income, which can be beneficial for small side jobs.
For those in a situation like your husband’s, there’s a potentially helpful option if the total tax liability from self-employment is £3,000 or less. If he qualifies, he can request to have this amount collected through his PAYE tax code, allowing the tax owed to be deducted from his salary in manageable monthly instalments rather than as a lump sum.
To take advantage of this payment method, he needs to be proactive. He must complete and submit his online tax return by 30 December following the end of the tax year. Meeting this deadline is crucial for ensuring that the tax adjustment can be applied to his PAYE code for the upcoming year.
