Taxes are often a freelancer’s biggest stress. Especially, for those just setting out. There are a number of tax traps that a freelancer should be mindful of.
1. Don’t assume you’re an employee of your business
- If you’re a sole trader, you and your business are legally one and the same.
2. Make sure you recognise your status as an employee of your business
-On the other hand, make sure you recognise your status as an employee of your business, when you’re operating as a limited company.
3. Do not use VAT Flat Rate Scheme without asking the HMRC and getting permission
4. Know what you can and can’t claim as expenses