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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.
Going freelance is a big decision and one to consider thoroughly before taking the plunge.
The tax year is the period of time during which you need to calculate your earnings to declare to HMRC.
To be confusing, it goes from 6th April to 5th April. The 2022/23 tax year is therefore from 6th April 2022 – 5th April 2023.
When it comes to paying your tax bill, this will have to be done online by 31st January 2024.
To read more about the tax year, check out our blog.
Whatever the profession of your self-employment occupation, the tax is broken up in the same way. There are two types of tax to be aware of:
You pay Income Tax depending on your yearly earnings. Take a look at the table below to understand the different tax bands to help you work out your bill.
|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|
As we said, 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 to at any point in your life or professional career.
If you lose your clients, for instance, or they pause work with you because of circumstances like the COVID-19 pandemic, your National Insurance contributions enable you to claim Job Seekers’ Allowance.
But there’s more than one type of National Insurance to be aware of. There are six.
As a self-employed worker, you only need to worry about Class 2 and Class 4 National Insurance, but in case you’re interested, here’s an explanation of them all!
Between April and July 2022, there are interim National Insurance rates that have come about as a result of Rishi Sunak’s 2022 mini budget.
To pay your tax bill as a freelance makeup artist, you should follow four steps:
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…
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 £2000 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 just ensure that you have evidence of it all. You will need it when it comes to doing your tax return.
Here is a list of examples of allowable expenses that you might incur as a self-employed makeup artist:
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