Hello, it's my first time declaring Upwork earnings on my self assessment tax return in the UK and I am totally stuck with how to declare Upwork income/earnings. I'm really hoping and praying someone here can help!
I am a self-employed/sole trader and have completed a few projects on Upwork. I now need to declare them as income on my self-assessment tax return.
My questions are:
- Do I put down the income before or after the Upwork service fee/VAT/withdrawal fee? E.g. the Upwork invoice for the client is $100 before Upwork take their charges. Is that the number I put down?
- If I have to put income on the tax return down before the Upwork service fee/Vat on service/withdrawal fee - do I put the income down in dollars or pounds? Do I have to convert it to the exchange rate it was when I received the money?
- And what out of the Upwork Fee / VAT on Fee / and Withdrawl to bank Fee is classed as an expense (I am not VAT registered)
I am really hoping some UK Upworkers have some knowledge on this because I am struggling. I really want to get it right! Appreciate any help anyone can give
You only need to concern yourself with money earnt - ie the amount you received after deductions by Upwork. Just convert that to sterling at the current exchange rate. Go to 'Reports' and then 'Certificate of Earnings'.
I am not a tax expert by any means, but it would seem to me that the withdrawal fee is a legitimate business expense.
If you're not sure, contact HMRC, I've always found them to be very helpful.
Maybe these threads can help you:
I'm in the UK too. I just add up the amounts that go into my bank account in GBP. That saves me having to do any currency conversions.
I haven't been audited or asked any expert if this is acceptable, but I see no reason why it shouldn't be.