Managing tax as a self-employed makeup artist

First things first, do you have to pay tax as a makeup artist?

The simple answer is yes. But how much you pay depends on what you earn. If you’re new to being self-employed, it can seem a bit daunting. But never fear, TaxScouts is here, guiding through everything that you need to know step-by-step.

How to go self-employed as a makeup artist?

Going freelance is a big decision and one to consider thoroughly before taking the plunge. 

• You must have enough clients to sustain enough income to live comfortably
• Could you become a resident artist at a salon? 
• Do you have a niche to lean into?
• How will you spark word of mouth?
  • A stall at a market
  • Wedding shows
  • Build a website
  • Your social media presence
  • Beauty networking events

What is the tax year?

The tax year is the period of time during which you need to calculate your earnings to declare to HMRC. 

To be confusing, the tax year doesn’t run on the same dates as the regular calendar year. Here are the key dates to keep in your diary.

You don’t pay your tax bill until after the tax year has ended. Once it has, you have nine months to file your self assessment and pay. The earlier you file, the faster you can find out how much you owe so you can start saving ASAP.

What tax do I owe as a makeup artist?

Whatever your self-employed profession, tax is calculated in the same way. First, there’s income tax which is calculated based on how much you earn. You pay it whether you’re employed or self-employed.

Take a look at the table below to see how much you’ll pay based on your salary.

What about National Insurance?

National Insurance accounts for your state contributions to the UK government. Through it, you qualify for different state-provided benefits that you can claim should you need. This includes the state pension, the marriage allowance etc.

How do I pay my tax bill?

To pay your tax bill as a freelance makeup artist, you should follow four steps:

1. Register as self-employed with HMRC
2. Gather the relevant documents to prove your income – read more about the documents that you’ll need here
3. Deduct your business expenses
4. Complete a tax return by 31st January 

You can do this in a few ways. You can either do it yourself via HMRC or, if you can’t stand the hassle, you can enlist an accountant to help. 

Or you could give TaxScouts a try… 

How do expenses work?

When you’re self-employed, you can claim back expenses on your earnings. This means that if you earn £31,000 from your work but spend £2,000 on buying makeup throughout the year, you will only pay tax on £29,000. 

HMRC will accept any reasonable business expense as a deduction, so ensure that you have evidence of all your business spending. You will need the receipts when it comes to doing your tax return.