There are, if you were not aware, websites dedicated to the freelance worker. These sites were created for both the business, and the freelancer in order to make it easier to connect people with the professional services that they require.
Of course, it isn’t always just individuals that freelance in this way as there are sometimes small teams of people hiring out their services.
Can I claim?
Finding and connecting with these service providers is free, but when it comes to payments a percentage is taken by the freelancing service (the website).
Download, and keep, all of your invoices from all freelancing websites. These invoices should contain everything that you need for your tax return, including the amount of commission that has been charged by the service (website, such as People Per Hour).
The service fee, or commission, can be deducted on your Self-Employed Expenses group, under “Costs of Goods Sold: Commissions”.
Aside from the commission that the service charge you, there are other taxable considerations to be taken into account.
Using the services of a freelancer is known as outsourcing work, and this is seen as a sale of a service, or product. Services and products normally attract VAT, and you are accountable for this, and as such are responsible for paying it - but is also able to claim a tax relief.
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