ASK & DISCUSS
INDEXExpenses When Working Hospitality Part-Time Alongside Being A Self-Employed Creative
8 years, 9 months ago - Ira Giorgetti
I am a freelance photographer and filmmaker, and currently run my business from home in London. Payments made to me by clients go directly into my business account. If I were to work part-time in the hospitality industry as a waiter, bar staff, or host should I have my salary paid into my business account, or my personal account? Also, how would I go about taxes on this? Does it make me fall into a different category than self-employed, even if it is only part-time work? Do my transport and uniform expenses count as tax-deductible for my business?
Sorry for the load of questions, just seeking a bit of clarity! Struggling artist, like so many others out there haha!
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8 years, 9 months ago - Paddy Robinson-Griffin
Employed work where your tax and NI are paid for you are your money, not the businesses, so use your account. You don't need to pay more tax on those earnings, just the self-employed earnings. Either way you need to do a year-end tax return, if you've not already registered as self-employed, do so tomorrow. You may need the help of an accountant to do your first year return so you understand what numbers to put where, but it shouldn't be more than £50 or so of their time. They will also be able to advise about deductibles.
Response from 8 years, 9 months ago - Paddy Robinson-Griffin SHOW
8 years, 9 months ago - Stephen Potts
Hi Ira,
I've been in this situation for some years. I work part time in the NHS, and am self-employed as a freelance writer the rest of the time. I fill in a tax return each year with two sections - employment and self-employment. There are some employment-related expenses I claim against my employment income (such as GMC registration). HMRC has a list of what is claimable according to your job. I also claim self-employment expenses against my writing income. You have to be able to demonstrate that the expenses are related to the role: in your case that might include buying camera kit. You can also claim an amount for use of your home as office - but again you need to be able to justify it in terms of a proportion of insurance, council tax, heating, phone and broadband, etc.
For the last few years I've been assisted in this by an accountant, who also advises other local writers, and therefore knows the particular issues. Paddy's right that an accountant need not cost the earth - and the fee is deductible. They are likely to have to do more in the first year, including meeting face to face, so you need someone reasonably local. After that it can probably be done remotely. You may need a word of mouth recommendation from someone in your film-maker/photography network.
Be aware that your tax return will generate a tax code which your employer will use - and which could reflect tax underpaid via your self-employment work.
Stephen
Response from 8 years, 9 months ago - Stephen Potts SHOW