Don’t risk HMRC fines.
A freelance marketing consultant is someone who helps businesses with their marketing activities on a freelance basis. In other words, they are self-employed. Freelancer marketers are more common than you might think. In fact, you can practically do any job freelance instead of working for an employer.
Usually, you start life working for a company under an employer. Once you’ve built up enough contacts that will become your client base, you can take the plunge and go it alone.
But there are some key differences between being employed and self-employed that you should be mindful of.
One of the important differences between marketing as a freelancer versus as an employee is control. When you’re self-employed, you have more control over your working life. Or so you’re led to believe. But the reality is that when you first start out freelancing, things aren’t always as rosy as you might expect. You’ll probably end up working longer hours and for less money initially. This is because building a loyal network is crucial to being a freelance marketing consultant, but it takes time to build.
That said, whilst it may be a slog at the beginning, it will be worth it if you can turn your business into a success.
There are a few things to remember when it comes to paying your taxes yourself:
If you do freelance marketing as a side gig alongside your full time job, you can earn £1000 tax-free through the Trading Allowance. However, if you claim this allowance, you’re not allowed to deduct expenses.
If you’re freelance marketing as a full time role, the tax-free allowances are a little different. They are based on Income Tax and National Insurance rates. Below is a table of earnings and the tax you owe on them:
|Up to £12,570||0%||Personal allowance|
|£12,571 to £50,270||20%||Basic rate|
|£50,271 to £150,000||40%||Higher rate|
|over £150,000||45%||Additional rate|
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