Freelancing gives you control over your work, and also makes you responsible for your own taxes. This overview covers the basics in our three core markets. It is general information, not tax advice; rules change, so confirm your situation with a qualified accountant.
United States
- You are self-employed. Income is reported on Schedule C with your Form 1040.
- Self-employment tax covers Social Security and Medicare, in addition to income tax.
- Form 1099-NEC / 1099-K: clients or payment platforms may report what they paid you. Report all income either way.
- Quarterly estimated payments are generally expected if you will owe tax for the year.
- Common deductions: home office, software, equipment, internet, professional development and platform fees, including the service fee on your project payments.
Canada
- Business income is reported on Form T2125 with your T1 return.
- Self-employed individuals pay both portions of CPP contributions.
- Once taxable revenue passes the small-supplier threshold, you generally must register for and collect GST/HST.
- You may need to pay tax by instalments if you owe above the CRA threshold.
United Kingdom
- Register as self-employed with HMRC and file a Self Assessment tax return.
- The trading allowance can cover small amounts of self-employment income.
- You pay Income Tax and Class 4 National Insurance on profits.
- Payments on account may apply once your tax bill passes HMRC’s threshold.
- Making Tax Digital for Income Tax is being phased in for self-employed people above certain income levels.
Record-keeping habits that save money
- Open a separate business bank account.
- Save receipts digitally the day you spend.
- Set aside a fixed percentage of every payment for tax.
- Download your Tasqerr earnings statement each month; it itemises gross payments and service fees.
Need help?
You can hire a vetted accountant or bookkeeper on Tasqerr in our Finance & Accounting category.