The information on this page is for educational purposes only and is not legal, tax, or financial advice. Tax laws change frequently and may vary based on individual circumstances. Always verify specific rates, deadlines, and requirements with a qualified tax professional or your local tax authority before making any decisions.
Cross-Border Tax Guide for PeoplePerHour Freelancers
Freelancing through PeoplePerHour with international clients? Understand the tax rules for this UK-based platform and your cross-border obligations.
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PeoplePerHour is a UK-based freelance marketplace. The platform charges service fees (up to 20% on first earnings) and handles payments through its escrow system. As a UK-based platform, VAT rules and UK financial regulations may affect how payments are processed.
Tax implications for PeoplePerHour freelancers
UK-Based Platform
PeoplePerHour is headquartered in the UK. VAT may be charged on service fees for UK/EU freelancers. Non-UK freelancers should understand the implications.
Sliding Fee Scale
PeoplePerHour charges up to 20% on first £350, then reducing rates. All fees are deductible. Track the actual percentage applied to each payment.
Hourlies vs Projects
Both Hourlies (fixed-price packages) and custom projects are taxed identically as self-employment income.
VAT on Fees
PeoplePerHour adds VAT to its service fees for sellers in VAT-registered countries. This VAT may be reclaimable if you're VAT-registered.
Escrow Release Timing
Like other platforms, income is recognized when released from escrow, not when the client initiates payment.
Tax tips for PeoplePerHour users
Track the sliding fee rate on each payment for accurate deduction calculations.
If VAT-registered, reclaim VAT charged on PeoplePerHour service fees.
Report income when released from escrow, not when project is completed.
Submit proper tax documentation to avoid withholding on cross-border payments.
Frequently asked questions
Does PeoplePerHour handle my taxes?
No. PeoplePerHour is a marketplace only. You are responsible for all tax filings and compliance in your home country.
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Tell us where you live and where your PeoplePerHour clients are based. We will show you exactly what you owe.
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