Freelancing Support

Glossary

Terms you've maybe heard of, but aren't exactly sure what they mean? Or just looking for specific resources related to this term? It's all here, constantly updated.

b

  • Breadcrumbing

    a client leading you on, with potential offers of work, but never signing the contract.

c

  • Corporation Tax

    Tax you pay on business profits, when registered as a limited company.

f

  • Freelancer

    An individual working in self-employment, providing services to a client on a project by project basis.

  • FSCS protection

    FSCS protects customers of financial services firms that have failed, to help keep your business funds safe.

g

  • ghosting

    being ignored by a client, despite having things to resolve.

h

  • HMRC

    HM Revenue & Customs (HMRC) is the tax authority of the U.K. government.

  • Making Tax Digital

    A UK government initiative to digitize tax reporting, requiring businesses and individuals to use software to submit tax returns online.

i

  • ICO

    The Information Commissioners Office (ICO) is the UK's data privacy watchdog.

  • Income Tax

    Tax due payable to anyone earning over a certain income in the UK, and the primary tax you'll pay when you're self-employed

  • IR35

    Tax law designed to level the amount of tax paid by those in employment and self-employment.

l

  • Limited Company

    A limited company is one of the legal formations of a business in the UK. Whilst you're not technically self-employed if you're a limited company director, many sole-owners of limited companies describe themselves as self-employed.

n

  • National Insurance

    National Insurance is a tax on earnings and self-employed profits. There are different types of National Insurance, you'll need to understand the differences.

o

p

  • Payment on Account

    Paying your income tax in advance, as is mostly commonly required by the self-employed.

s

  • Self Assessment

    The process of calculating and reporting your income and expenses to HRMC each year, rather than being taxed at source.

  • Sole Trader

    A sole trader is considered to be ‘self-employed', and is the singular owner of a business, entitled to keep all profits but liable for all losses.

u

  • UTR

    Universal Tax Reference - a unique identifier for you, when you're completing your Self Assessment tax return.

v

  • VAT

    Value Added Tax, additional tax you'll be charging your customers and liable to pay to HMRC, when your turnover is over £90,000

Freelancing Support is the impartial and independent guide to independent work. We help freelancers find support, navigate self-employment and work well.