I don't have a freelance tax code, but still want to get paid.
matt oneill
I follow this newsgroup everyday, but now need a bit of advice.
A major UK Newspaper has expressed interest in an article I am writing
about Streaming Media. I am not a freelancer, consequently I don't
have a tax code.
Could payment be made to the company I work with, thus all the tax
issues are eliminated? Would it be reasonable to suggest to the
newspaper concerned?
Thanks very much.
Matt O.
Barbara Lake
You don't need a tax code. Your SSN will do very well. As for tax
purposes, don't even think about dodging tax liability. This way lies
an IRS audit. Your company didn't write the article and so payment
should come to no one but you. If the check is under $600 and you do no
more work for that mag for the balance of the year, they will not report
it to IRS. I'd still claim it as income. Ya never know.
Barbara
Bruce Tober
oneill <matton...@hotmail.com> writes
I suggest you get in touch with your local Inland Rev office. That's too
complex and iffy a question for non-experts.
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Bruce Tober
<bgl...@hotmail.com> writes
>matt oneill wrote:
>>
>> A major UK Newspaper has expressed interest in an article I am writing
> You don't need a tax code. Your SSN will do very well. As for tax
>purposes, don't even think about dodging tax liability. This way lies
Actually, if, as indicated above, he's located in the UK, he most
certainly DOES, need a tax code if he's a freelance. And if he's not,
then he needs to check with the Inland Revenue.
>an IRS audit. Your company didn't write the article and so payment
The IRS (as in the usa) has no say in the matter, unless he's in the
states but writing for a publication in the UK
Kurt Ullman
wrote:
>
> You don't need a tax code. Your SSN will do very well.
Dude is British....
------------------
Remember that anecdote is not the singular of data.
Barbara Lake
>
> In article <3C486424...@accessbee.com>, Barbara Lake <bgl...@hotmail.com>
> wrote:
>
> >
> > You don't need a tax code. Your SSN will do very well.
> Dude is British....
Well, shoot! He didn't say he was British, only that a UK paper was
interested in his article. He was writing from Hotmail.Com. I guess my
ethnocentricity was showing -- thinking everyone is American unless they
state otherwise. <G>
Barbara
matt oneill
It looks like I may need to get freelance status then. I'll check with
the I.R.S over here.
Thank you all very much for your advice. It's much appreciated!
Best wishes,
Matt.
Charlie Connelly
"matt oneill" <matton...@hotmail.com> wrote in message
news:76092df3.02011...@posting.google.com...
I reckon Matt actually works for the Inland Revenue, and was waiting for
someone to say 'ach, just get the cheque made out to yourself, bung it into
your account and think no more of it. No-one will be any the wiser. Even
better, ask them if you can have it in cash...'
matt oneill
I promise that I am not from the IRS.
It's just that I thought that the newspaper would ask me for a tax
code before sending out a cheque. I really don't want an Audit trail
being created, and then finding myself in the shit!
Bruce Tober
You might also want to join the fleetstreet and freelanceukandi email
lists via yahoo. They're the perfect fora for such discussions.
Bruce Tober
>
>I promise that I am not from the IRS.
Matt, stop it now! It's the yanks who are supposed to be yumer and irony
deficient, not the Brits.
Andrea J Chee
oneill <matton...@hotmail.com> writes
>It's just that I thought that the newspaper would ask me for a tax
>code before sending out a cheque. I really don't want an Audit trail
>being created, and then finding myself in the shit!
I've never had a client ask me for a tax code before. Occasionally they
may ask for my NI number, if they're wanting to put me through their
books, but that's usually repeat clients wanting a more formal financial
arrangement. A tax code is just a number that represents your tax status
and tells your employer how much tax he has to pay on your behalf - it's
not unique to you, as everyone with the same status will have the same
code.
Usually I send clients an invoice and they send me a cheque. They're not
my employer, they're my customer, and as such they simply buy a service
from me. My tax affairs are not their business, any more than the tax
affairs of the company they hire to fix their computers or the shop
where they buy their stationery. It's up to me to make my own
arrangements with the taxman. In my case, that means filling in a tax
return, but I'm a full-time freelance so my situation is different from
yours.
From the Inland Revenue site:
"You have to tell us if you get any income that should be taxed and that
we might not know about. You must do this by 5 October after the end of
the tax year in which you received the income. We may or may not need to
send you a tax return - some taxpayers will be able to pay the right
amount of tax through an adjustment to their PAYE code."
Sounds to me like they're saying it's sometimes possible to adjust what
they take from your normal salary to cover it, but I'm no expert. I'd
suggest giving them a ring.
- ANDREA
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Sean McManus
> issues are eliminated? Would it be reasonable to suggest to the
> newspaper concerned?
Avoid this. It's a real nightmare. Reasons to avoid it include:
- The VAT that needs to be added to the bill (a new headache)
- Any tax the company incurs by having a greater turnover (ie, you
might increase the total tax that has to be paid)
- Potential loss of copyright, since your company would supply the
services to the newspaper and your company legally owns the copyright
in work you do for it. If you contract with the newspaper, you have
your copyright (or can negotiate with it, whatever), but I think it's
an important distinction. (I'm no lawyer, by the way, but I think this
is right).
- I think it's important to look professional dealing with newspapers,
so trying to get them to go through hoops with your company might not
be in your best interests.
This is a common situation: somebody works, and earns some more money
elsewhere. The solution is simple. Phone the Inland Revenue and
declare it, or put it on your self-assessment form if you get one.
You need to do this when tax returns are being sorted for the current
financial year. If you're paid before this April, then that means you
need to sort it after this April (and ideally before September).
The taxman can change your tax code to reclaim the tax as long as you
haven't earned more than your tax-free allowance. He basically lowers
your tax-free allowance by the amount you earn. This means that the
following year, if you made 500 pounds from the newspaper, your tax
code goes down 1000 pounds, you'll pay tax on 1000 more pounds of your
salary than you did before, and the tax all finds its way home.
I know the tax office gets a bad reputation because people don't like
paying taxes, but I have to say that I've always found the Inland
Revenue's people very helpful and patient.
Your company accounts department might be able to tell you the number
for the office that manages your tax, or failing that you can look
them up in the phone book.
Best of luck!
Sean
---
Sean McManus - www.sean.co.uk
Author of 'Small Business Websites That Work' - www.sbwtw.com
Co-author of 'Quick Answers to Web Marketing Questions'
Sean McManus
> haven't earned more than your tax-free allowance. He basically lowers
> your tax-free allowance by the amount you earn. This means that the
> following year, if you made 500 pounds from the newspaper, your tax
> code goes down 1000 pounds, you'll pay tax on 1000 more pounds of your
> salary than you did before, and the tax all finds its way home.
Sorry I made a mistake there. It should, of course, be 1000 pounds
throughout and not 500 pounds earned for the example to make sense.