Freelance Work

[fake_oranges]

I saw on IRAS that I dont need to issue serialised receipts for work done if my annual income from free lance work is below $12,000 annually

But if I get multiple sources of income that exceed $6,000 monthly, and I can’t receive the receipt or issue them.... (eg no paperwork)

Will I get in trouble when filing taxes?

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[bright_84]

I saw on IRAS that I dont need to issue serialised receipts for work done if my annual income from free lance work is below $12,000 annually

But if I get multiple sources of income that exceed $6,000 monthly, and I can’t receive the receipt or issue them.... (eg no paperwork)

Will I get in trouble when filing taxes?
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Are they all the same type of freelance?

 

[fake_oranges]

Different

Are they all the same type of freelance?

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[bright_84]

Different

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Personally I don't think the threshold means much. You are generally required to maintain accurate and verifiable records for tax purposes.

 

[fake_oranges]

Got a few arrangement that will make it hard to request for a formal payment of services

So wonder will anyone question that I have such an income but not verified

Personally I don't think the threshold means much. You are generally required to maintain accurate and verifiable records for tax purposes.

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[tiertime]

I saw on IRAS that I dont need to issue serialised receipts for work done if my annual income from free lance work is below $12,000 annually

But if I get multiple sources of income that exceed $6,000 monthly, and I can’t receive the receipt or issue them.... (eg no paperwork)

Will I get in trouble when filing taxes?

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i am not sure if u do not file but have money in bank , will they check how come u have so much money and dun file, they may suspect u launder money or wat...

better check with IRAS on how to file properly..

 

[Hafi]

freelancers or sole prop usually will "open 1 eye close 1 eye" unless you are talking about high amount like 6-fig income then you'll need receipt/ proof on their legitimacy.

PTE LTD more stricter so accounts have to tally and everything have to be in order.

 

[fake_oranges]

freelancers or sole prop usually will "open 1 eye close 1 eye" unless you are talking about high amount like 6-fig income then you'll need receipt/ proof on their legitimacy.

PTE LTD more stricter so accounts have to tally and everything have to be in order.

hmmm. got it
at least I got pay taxes right?

 

[Hafi]

hmmm. got it
at least I got pay taxes right?

at least gotta show best effort. If you filed income tax for trade income before its just 2-liner for sole-prop unless you sway sway trip the audit redline then they will ask you for your full account transaction records.

 

[mummy1234]

I am a locum GP like a freelancer and only record my income in my diary. Bank has records I supposed, from cheques and IB transfers but some r cash payments too.

 

[fake_oranges]

So you just declare your income and not provide any documents?

I am a locum GP like a freelancer and only record my income in my diary. Bank has records I supposed, from cheques and IB transfers but some r cash payments too.

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[mummy1234]

So you just declare your income and not provide any documents?

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Yep, for the last 8 years no problem. But I have my diary records and they can verify with the clinics.

 

[bright_84]

Yep, for the last 8 years no problem. But I have my diary records and they can verify with the clinics.

Just so we're clear. You may not need to submit, but when questioned you must be able to substantiate.

 

[fake_oranges]

Ok. Got it

Just so we're clear. You may not need to submit, but when questioned you must be able to substantiate.

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[numbers]

if i work a full time job then at night i spend 1-2 hours doing freelance project and get the freelance payment.
Then how does iras know we have freelance work income? The money deposit in bank could be a gift, could be a friend owed money and pay back etc

 

[Hafi]

Ok. Got it

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crawl back period is 5 years (previously was 7 years).

 

[Hafi]

if i work a full time job then at night i spend 1-2 hours doing freelance project and get the freelance payment.
Then how does iras know we have freelance work income? The money deposit in bank could be a gift, could be a friend owed money and pay back etc

if you are going through the legit route, you should register yourself as a sole prop and then report your freelance income and profits through trade income (there a self-employed section for separate reporting within your personal form B) together with your salaried income.

However some employeers like the civil service do not allow "moonlighting" aka self-employment or side business so obviously you can't do your reporting this way.

depends on your current employment situation, if your freelance income is low amount then probably you can neglect that reporting and act as nothing has happened until you starts earning a substantial amount then you probably can't "siam" already.

Best practice is to register a business and conduct your freelance work side by side with your current employment if your employer allows that.

 

[fake_oranges]

I got a company.

But i cant have offical invoices for my services either to myself or channel through my company

if you are going through the legit route, you should register yourself as a sole prop and then report your freelance income and profits through trade income (there a self-employed section for separate reporting within your personal form B) together with your salaried income.

However some employeers like the civil service do not allow "moonlighting" aka self-employment or side business so obviously you can't do your reporting this way.

depends on your current employment situation, if your freelance income is low amount then probably you can neglect that reporting and act as nothing has happened until you starts earning a substantial amount then you probably can't "siam" already.

Best practice is to register a business and conduct your freelance work side by side with your current employment if your employer allows that.

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[Hafi]

I got a company.

But i cant have offical invoices for my services either to myself or channel through my company

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if you already got a company registered and you don't account for transactions then whats the purpose of the company? I don't understand your situation well but as a saying goes: "do but don't get caught".

For certain things you can't control and need to fly under the radar then don't be "loud" about it and keep everything discreet.

add: ultimately the purpose of reporting income is to pay your taxes due so if you did earn profits from your revenue, you can declare as income earned and just pay your taxes. Don't worry about documentations as you fulfilled your responsibility as a tax payer.

 

[fake_oranges]

I want to pay taxes so that I can get offical loans like credit card and car loan

But my income are under the radar and dont have proper documentation with both parties

if you already got a company registered and you don't account for transactions then whats the purpose of the company? I don't understand your situation well but as a saying goes: "do but don't get caught".

For certain things you can't control and need to fly under the radar then don't be "loud" about it and keep everything discreet.

add: ultimately the purpose of reporting income is to pay your taxes due so if you did earn profits from your revenue, you can declare as income earned and just pay your taxes. Don't worry about documentations as you fulfilled your responsibility as a tax payer.

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