Starting out as a new designer?

[Rybo]

im 18 studying atm but freelance on the side i have got a steady flow of clients i am all prim and proper though i go and meet the person take my sketchbook and scrapbooks show them things even had a pint with one bloke lol. this whole subject is new to me i have a m8 who is self employeed but in construction like you say dident know the same rule applies to me.

and what cercomstances would HM revenue investigate someone?

[blueocto]

Well I've worked in alot of departments including Self-Employment Services and Tax Evasion, and it can take anything for them to investigate you, and they do catch up with you eventually, so might as well register asap.
Non Compliance (or fraud as some know it) is a hot potato and the Revenue does not see ignorance as an excuse and would quite happily march you off to prison or the courts for being 'unknowing' of the circumstances.
So register! lol

[Cwilk]

Just for information here in the U.S., a minor (under the age of 18 .... I believe) can make up to $1,700 a year before filing taxes on the money.

On the note of being a graphic designer in general here in the U.S., unfortunately most do not get business licenses or pay county, state or federal taxes. While the county we live in does not require a business license, we still paid to have a "DBA or Doing Business As" paperwork.

[zumojuice]

Is there a theshold amount you need to be earning freelance before it's taxed? does this alter if you're already getting taxed at a full paid job and get occasional jobs on the side?

Frankly getting taxed 3 times plus on everything is a joke, but we ain't laughing

[Cwilk]

In the U.S. you have to file taxes on anything you make. If you work for someone else full-time and do freelance at the same time, you have to pay taxes on your freelance work too. Taxes are paid to the county you work in, to the state and to the federal government. Unfortunately if you have a reseller's license, you have to collect and pay the tax for any items you use your license on.

I about choked when I saw how much we brought in for 2007. Fortunately a lot of it is for printing costs. I think I mentioned it once before, but we invoice about $15,000 a year in business card printing alone.

Thank goodness I have an accountant on staff. : )

[blueocto]

Originally Posted by zumojuice

Is there a theshold amount you need to be earning freelance before it's taxed? does this alter if you're already getting taxed at a full paid job and get occasional jobs on the side?

Frankly getting taxed 3 times plus on everything is a joke, but we ain't laughing

In the UK, you do have a personal allowance like any employed does; for the tax yar 2007-08 it is £5,225. Basically anything above that figure is taxable.

The fact you already pay tax in say an employed job, has no effect on freelance tax except you dont get the personal allowance for every job. Everyone only gets it once, no matter how many kinds of jobs you have.

In summary...
you earnings through employment
+ you earnings through self-employment
- personal allowance
= money to be taxed on