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UK Tax Return - Income +/- Upwork Fees

Active Member
Laura S Member Since: Jul 29, 2019
1 of 4

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 Smiley Happy 
Thanks

 

Community Guru
Richard S Member Since: Mar 12, 2019
2 of 4

Hi Laura,

 

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.

Community Guru
Jennifer R Member Since: Sep 15, 2017
Community Guru
Richard W Member Since: Jun 22, 2017
4 of 4

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.

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