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20% of Freelancers Losing Money

freelancesupermarket.com newsroom

RSS 01 January 2017
Research suggests that 20% of freelancers believe they've lost money due to mistakes on their tax returns over the past few years.

I definitely think this is possible, especially when you start to become more successful as a freelance professional, as it then becomes easier to make mistakes because you have more income and expenses.

As you're no doubt aware, the deadline for online tax returns is January 31st, so make sure you do it as soon as possible. You don't want to be rushing around on the last day trying to get everything done...this is when mistakes will happen.

I always advise freelancers to get an accountant if possible, although I am aware that some people like to do it themselves.

Sometimes it's because they don't want to pay for an accountant, but I would say that most times they will pay for themselves and even save you money.

This is especially true as we enter a time when tax returns are about to become something you will have to do 4 times a year. In other words, tax is becoming quarterly.

If you think you're making mistakes now, imagine doing that 4 times a year...it's going to cost you even more money. My advice is don't leave it to chance, get a an accountant who specialises in working for freelancers.

Whatever you decide to do, just make sure you are not losing money by making mistakes on your tax return form.

There are many ways you can lose out when submitting your tax return. One way is to miss the deadline and then instantly get a £100 fine. Another way is to miscalculate the amount of tax you owe, which could mean you end up getting a higher tax bill than expected.

You might also be missing out on potential expenses that could be claimed, which when done correctly will almost certainly mean you pay less tax as a freelance professional.

I think the subject of tax is something that needs to be talked about more in the freelance world. Very often you hear about all of the benefits of becoming self employed such as working less hours and being your own boss, but there is very little information about properly filling in tax returns and making sure everything is done correctly.

Perhaps that's why most people hire accountants? I guess it's easier just to pass everything on to someone who is an expert in the field, so you can then get on with doing what you do best...getting clients and making money.

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