Accountant for PeoplePerHour freelancers

PeoplePerHour work is self-employment. You are taxed on profit — the gross value of the hourlies and proposals you deliver, less the costs of delivering them, including the platform’s service fee and payment charges.

A UK-dominated client base changes two things compared with global platforms. Your supplies are usually standard-rated for VAT once registered, and your clients often expect an invoice in your own name, so it is worth keeping proper numbered invoices even when the platform generates its own.

Deductible costs are the usual freelance set: software and subscriptions, equipment at the business proportion, subcontractors, professional indemnity insurance, training that maintains existing skills, travel to client meetings and a fair share of home office costs.

Sole trader profits carry Income Tax and Class 4 National Insurance. Staged project payments make income uneven, so we hold a percentage of every payout and check it against real profit each quarter.

The VAT decision is the big one for UK-facing freelancers. Passing the threshold is based on rolling 12-month turnover, and because many small-business clients cannot reclaim VAT, the timing affects your effective pricing. Where most clients are VAT registered, earlier registration can be a straight gain.

Bad debts, refunds and disputed scope are common on platforms. Under cash basis these look after themselves; under accruals we need the evidence trail, which the platform message history usually provides.

As the business settles, we look ahead: whether to incorporate, whether a pension contribution is the best use of a strong year, and whether to move repeat clients off-platform to direct contracts so the service fee stops eating the margin.

Source: Income Tax rates and allowances (gov.uk) · Self Assessment (gov.uk)