Hello everyone, hoping you can help.
I have a standard 9-5 job where I get a salary of £20k paid monthly, I pay tax for that within the tax code range I am in as normal. Its PAYE I believe but not sure what that means.
Now I have a second job which is working as a freelance programmer online for an LLC company based in the US, the firm is a subscription based website offering access to a forum where subscribers can download digital content. I am a backend programmer for the company developing the digital content.
Subscriptions are paid in $ via PayPal, each week I am paid 50% of the business profits for that week (This is calculated via subscriptions vs disputes and server costs for hosting). The owner is tax deducting me as a business cost in his tax.
I am starting to receive more and more each week now since the beginning of the year when I started, its starting to hit circa $300-500 a week so obviously I need to start paying tax.
How do I go about this, what would you recommend?
I am unable to commit any of my income as a business cost really because develop the software using freeware tools provided by Microsoft so I fear that whatever comes into PayPal in a week is 100% tax deductable. Also I want to register myself correctly in order to avoid big tax increase for my PAYE job.
I want to get some initial advice so that I can go to a company with the right information at hand to speed the process up. Avoid additional cost and stress.
Last question, I have done freelance work on and off for around 10 years mainly via Freelancer forums where people hire out for random projects. I have been paid very irregular in this, nothing like the current earnings and it's often been paid in all sorts of manners (Digital items, PaySafeCard, Bitcoins etc) so I would find it very difficult to include this in any returns, so I would be looking to start it from January where this current work started to become a regular income. What are your thoughts there?
Thankyou.
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