/ic/ - Artwork/Critique

actually, how the fuck do taxes work with freelance revenue ?

>>2695551
from what i hear you keep records of everything and get an accountant.

>>2695524
>How do I even go about getting a mortgage on a house or insurance? My income is not steady and it's not a guarantee. Is there any way possible to live a normal life financially if my source of income as an artist is at the behest of private commissioners? What kind of bank would even loan money to someone in my line of work?
I've been wondering this myself, but I'm pretty sure they will give you a loan or whatever if you had an income for a certain time.

>>2695551
>actually, how the fuck do taxes work with freelance revenue ?
You get a tax form or whatever your country calls it, see how much money you made in the past year, calculate your tax, and pay your tax.

>>2695557
This can either be a good move or a stupid move depending on your income.

>>2695524
Being a self employed artist is no different from being a self employed plumber. It's always a good idea to have an up to date business plan.

You can do all the book keeping and taxes yourself (a chore) or pay an accountant (they may actually save you money).

As for mortgages and stuff the bank will want to see your tax returns and maybe cash flow projections.

>>2695952
What book keeping? I thought it's just keeping track of all the money you made that year. There are lots of commissions where you won't have a written contract.

>>2695956
>keeping track of all the money you made that year
This and all your outgoings, materials, expenses, travel costs etc. A lot of this can be claimed back off your taxes.

This is why if you are actually making money out of your art an accountant is a good idea. Do you want to deal with all this crap (and more).

In the UK you have to do a self assesment form each year if you are self employed, people dread it.

>you won't have a written contract
At least do reciepts, how are you going to prove all this money isn't from drug dealing.

Also public liability insurance, you might stab someone with a pencil by accident kek.

Seriously though if you are making an income off this do it right. I tried and didn't so I'm on /ic/.

>>2695967
>This and all your outgoings, materials, expenses, travel costs etc. A lot of this can be claimed back off your taxes.

But who is gonna care if you just skip this or keep it as simple as possible? The IRS sure isn't gonna go after you for paying more taxes than you had to because you couldn't be bothered doing all the write-offs, right?

At least I have never heard of a person getting into trouble for paying too much taxes.

>>2695524
That's not how clips work.

>>2695975
You can skip it, but it's like shooting yourself in the foot. Deductions saved us $8k last year. You can decide not to bother with it, or you can pay an accountant for a fraction of that and still save a lot more money than you would've otherwise.

>>2695981
Wtf I didn't see that at first. Is this one of those wikihow illustrations? They need new artists.

>>2695967
>At least do reciepts
Would paypal invoices count as receipts?

>>2695551
Keep records of everything. I'm in canada and there's specific places on the tax forms where you put any freelance pay you've collected. And when you have your buisness registered that money just goes in as it does for any regular tax payers. The great thing about freelance is all the tax write offs you can do. Go for lunch with an artist friend? That can count as a part of your business = write off. Spent a thwack of money on a new tablet? Write off. You can just about write off everything. It's crazy.

>>2695524
Why is they pin the katty?

>>2696702
pinching katty neckie makings katty stops movings

>>2696700

I'm a Canadafag and I'm screencapping this, printing it out and stapling it to my wall.

>>2696676
I meant to say invoices. I guess so but it's been years since I (briefly) went down the self employment route.

>>2696700
This

Don't worry too much about all this though As long as you pay your taxes (with the help of a "creative" accountant) you'll be fine. As soon as the taxman suspects you are trying to evade taxes they'll go over everything with a fine tooth comb and come after you hard. In most civilized countries tax evasion and fraud are major offences.