Freelancers' Questions: How to show on my tax return that I paid other freelancers?

Freelancer’s Question: I’m a small-scale freelance video cameraman/producer. This year on a couple of projects, I gave various bits of work to other freelancers and paid them for it. My question is, how do I handle this on my tax form, which section do I include this under -- would it be in allowable expenses?

Expert’s Answer: Yes, this would be an allowable expense in my opinion. If you're completing the short tax form for your self-employment, and are filling in your total allowable expenses box only, you can put it in there.

If you're filling in more details of your expenses, then I would recommend either box 12 (Wages, Salaries and Other Staff Costs) or box 15 (Accountancy and Other Legal and Professional Fees) on the short form. Alternatively, you might opt for either box 18 (Wages, Salaries and Other Staff Costs) or box 27 (Accountancy and Other Legal and Professional Fees), on the long form.

The expert was Emily Coltman FCA, chief accountant at FreeAgent, an online accounting solution for freelancers and the self-employed.

Jan 24, 2014
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