ajlancer
Level X3
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I think the terms and that means of self-employed and freelance run in parallel with one another. As per as I do know self-employed individuals and freelancers are a similar status. And till nowadays I perpetually thought that a freelancer or a self-employed person were one and therefore the same. However, it appears, from reading through numerous topics that a self-employed person pays a lot of tax than a freelancer. Question but why?
Now I do not would like a lecture on search or to be told the topic has been wide coated elsewhere or to be suggested to use the services of a tax consolatory. I simply wish to understand the distinction between the 2 terms and why a freelancer ought to get advantageous tax treatment.
Hopefully the answers provided are going to be helpful to those considering.
Thanks by Ajlancer
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MasterA
In the UK, a freelancer is self-employed. However, you may need to pay more than just income tax; that is VAT for services you sell. Therefore, effectively, you are paying more tax. For example, if you sell an online product, you will be required to pay VAT for people who live in the EU. However, if you put Google Adsense on your website, then you will not need to pay VAT since you are not selling ads space but using an ad network. This depends on where you live and is different for different counties. Which country are you talking about? In the UK, a freelancer is self-employed. However, you may need to pay more than just income tax; that is VAT for services you sell. Therefore, effectively, you are paying more tax. For example, if you sell an online product, you will be required to pay VAT for people who live in the EU. However, if you put Google Adsense on your website, then you will not need to pay VAT since you are not selling ads space but using an ad network.
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