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22

I am currently a student with no registered business etc You are required to register (link) with hmrc as self-employed in this case - and while you are at it (assuming profits are below the threshold) register as exempt from Class 2 National Insurance. Failure to register will result in a fine if (when?) you get tagged... What is required on a UK invoice ...


15

From poking around the IRS website (http://www.irs.gov) it appears as if you will not owe income tax in the United States. I am not a lawyer or a tax professional, so I can't definitively answer this for you. Most of the information is about nonresident aliens working in the US or having a US spouse. However, you may find something applicable in this ...


11

You're pricing yourself into the ground. @ChrisForrence has great points and I'll add a few more... You will NEVER and I repeat NEVER profit from charging $350 for a site. Let's break this down from the first meeting... First meeting. Needs assessment - 1 hour Contract writing - 2 hours Concept development (for a basic site) - 2 hours Second meeting. ...


11

For what it's worth, I thought I'd give some follow-up to this. I was finally able to get in touch with a US-based international accountant, and she let me know that in my particular situation I was not liable to taxation in the United States. There can be some edge cases, so of course if in doubt, you should always try and seek professional assistance, but ...


10

According to the IRS, all self-employed persons are generally required to file quarterly self-employment and income tax payments that are based off your estimated yearly earnings. There are exemptions to this rule, as outlined on the IRS page for self-employed individuals, for those that don't make a net profit. As for working another job where you do pay ...


8

Your friend has good reasoning. Here's a few reasons why charging more will be better for you: Slow periods: One reason to charge more is to be able to live off of past earnings. If you have four projects this month and none next month, that second month is going to seem pretty darn lean, especially for living in New York City! Charging $400 ...


7

In my experience, clients who I've done contract work for haven't asked for this until the end of the fiscal year, when their accountant starts pressing them to get their taxes in order. My experience comes from dealing with small startups, where there's not a lot of process in place. The mutual trust came from the fact that they already paid me hundreds or ...


7

The easiest way to actually provide your services to a charity is volunteering for the charity themselves; it's free, and off-the-books. You don't have to declare anything, and you don't have to pay national insurance, which is a plus. However, if you want to incorporate as a nonprofit in the UK, you need to incorporate as a Company Limited by Guarantee (...


6

If you believe the Single European Market propaganda, you would be right to believe that a company incorporated in any EU state can undertake work in any other EU state - in which case LUX (or EI, NL) may be the answer to your question. However, the SEM is rarely straightforward in practice, and I know from first hand experience that using your own ...


6

So this is an interesting question and I decided to do a little research. It seems that non-resident employees (those who are residents of one country but work in another) are subject to double taxation (being taxed by both their country of residence and country of work) unless they obtain special dispensation by filing a lot of paperwork. New Zealand UK ...


6

Employers send 1099-MISC to contractors, not vice-versa. Even if the employer does not send a 1099 to a contractor, the contractor is still on the hook for the taxes. The instructions for form 1099 explain it very clearly: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf "File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during ...


6

good idea to start a bit of freelancing on the side! There are some rules but they are easy and shouldn't scare you off. I'm in the UK too: the income is taxable in the same way as your normal income you will need to register with HMRC as a sole trader (even though you keep your normal job) - I think within 3 months but I could be wrong (https://www.gov.uk/...


5

According the this CRA PDF File, you do not charge any tax if the product is for use outside of Canada, and it's not a physical product. It counts as an Electronic Product, so no taxes get charged if selling over the border. This also applied if you host the website on your own server, within Canada. If they are getting services over the border though, it ...


5

It's probably reasonable for you to make a rough estimate of the percentage of business use for your home office and Internet. You could keep a diary for a week or a month, noting down your hours for personal and business use and then extrapolate these numbers for the whole year. There is no easy way for the tax department to check the actual percentages so ...


5

Even as a single member LLC you must keep finances separate. You must have a bank account for the LLC which is not your personal bank account. Then you can pay yourself (or take dividends) from the LLC funds. But you can not deposit the LLC money into a personal bank account. Well, you aren't supposed to. I guess a bank may allow you to, but legally you ...


5

I don't know the specifics of the UK, but at a high level I suspect it is similar to the US. Once you have formally registered your business entity, the government expects periodic reporting from you with respect to taxes. You need to file even if you haven't done any business, just indicate in the filing that you have no revenue. In the US, there are ...


4

If you are UK based and not VAT registered then you cannot add VAT to your service charges. You should generate an invoice that just contains details of how to pay you (bank details, paypal, etc) along with either a breakdown of your charges or a total cost, depending upon how you're charging the client. It can be as simple as a plain word doc to get you ...


4

Since tax and trade agreements differ widely between different countries, the only thing we can address directly is your example - USA and India. The United States charges a 30% flat tax rate for all foreign entities receiving income from a US entity. This rate may be lower if the foreign country has a tax treaty with the United States, which India does (10-...


4

There is no tax. GST does not apply to sales of Intangible Personal Property to customers outside of Canada. Section 10.1 of Part V of Schedule VI of the Excise Tax Act received Royal Assent on June 22, 2007, and zero-rates all supplies of intangible personal property (IPP) made to non-residents that are not registered for GST. There are, however, ...


4

The particular break even point from Sole Proprietorship to Corporation depends on your personal circumstances but tends to be at around the 40-60K / year point. Talk to an accountant. Be aware that having a corporation also takes more time, from the time to set one up with a lawyer to the added time handling accounting (even if you are working with an ...


4

I heard from many people that Gibraltar has good taxation. You should check it out. Others opened a company in Germany as it has a great refunds and benefits for companies. The third group opened a company in South America (I think Chile) as it gives great benefits to any foreigner who wants to open a company. It would be great that you come back here ...


4

You are supposed to report all income earned from all sources. Your tax liability will depend on many other factors. I am not a lawyer or an accountant. It will be best to discuss with a tax professional about this. It would probably be best to set up a sole proprietorship company (again, talk to a tax professional, accountant or lawyer about how to do ...


4

I'm not sure if it's the same for every EU country, but in Belgium: Yes, you have to include a clause on your invoice that explains why you are not charging VAT. It used to be that you had to point to the exact article in the (Belgian) VAT law. Similar to your second example. In Belgium, at least, this has been simplified last year and you can just put a ...


4

In the UK, domestic work is VAT-exempt if you don't meet the income threshold for VAT (currently £82,000). If they ask for your VAT number for tax purposes, simply state that you are not registered for VAT and do not charge VAT. If they complain, they have a mediocre accounting department as this is the very first section on VAT in almost all documents ...


4

Yes to the question title, no to the question in the text. Gumroad simply deals with the EU VAT paperwork for you, nothing else. Registering as self-employed, filing taxes with HMRC etc. is all a completely different matter and still needs to be done. You currently don't need to register to for VAT in the UK unless your VAT taxable turnover is more than £...


3

Hopefully there are some tax experts here as I'm not one! Ideally, the £50 (or the actual travel expense amount) should be entered as a reimbursement of an expense so that you aren't paying VAT that you would pay if it was entered as income. The VAT has presumably already been paid when you paid for your travel.


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