Second income tax on Upwork earnings

[#1]

Hi all,

I’m very new to upwork and so far have completed just one job, so I’m a long way away from making withdrawals, however before I go any further I’d like to know about tax requirements.

I’m full time employed at the moment and I’m looking to build my freelancer work up bit by bit on the side. I’m sure you’ll understand that I simply can’t afford to give up full time employment straight away!

But how does the tax work? I’m UK based and don’t want to fall foul of any rules. Would I only pay tax on money that appears in my bank account once it’s withdrawn from Upwork?

As it’s not a regular income, could I make one off payments to HMRC at the end of each year once I know how much I’ve earned?

Any other advice would also be greatly appreciated.

Thanks
Mike

[#2]

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Mike K wrote:

As it’s not a regular income, could I make one off payments to HMRC at the end of each year once I know how much I’ve earned?

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You need to pay taxes on any self-employed income over £1,000, in addition to the taxes that you pay at your regular job. Information on registering your business is here: https://www.gov.uk/set-up-sole-trader. If you've never done taxes as a small business before, then it would be best to hire an accountant for at least the first couple of years to ensure that you're filling out the information correctly and claiming all eligible expenses.