The income dictionary.

1099-NEC (US)

The US tax form that businesses send to non employee freelancers and contractors who earned 600 dollars or more in a year.

ABN (Australia)

An Australian Business Number that identifies a business or sole trader to the Australian Tax Office and clients.

Bank statement analysis

Reading a period of bank transactions to find recurring fees, hidden subscriptions, refundable charges and saving opportunities.

Contractor

An independent professional engaged for a specific project or period, paid through an invoice rather than payroll.

CV (curriculum vitae)

A structured summary of your education, experience and skills used to apply for jobs, contracts or freelance briefs.

Day rate

The fixed amount a freelancer or contractor charges for one full working day, usually eight billable hours.

Digital nomad

A location-independent worker who uses remote work to live and work from different countries, cities or time zones.

Escrow

A neutral account that holds payment until both client and freelancer agree the work is complete.

Freelance

Self employed work delivered to clients project by project, typically billed hourly, by day rate or by deliverable.

Gig economy

An economic model built around short term, on demand work delivered through platforms or contracts instead of long term employment.

GST (Australia)

Australia's Goods and Services Tax. A 10 percent consumption tax that side hustlers must register for once turnover passes A$75,000.

Hourly rate

What you charge per hour of work, before expenses and tax. The simplest pricing model and usually the wrong one for senior freelancers.

Income diversification

The practice of building multiple independent income streams so that losing any one source does not eliminate your total earnings.

Invoice

A formal payment request sent to a client listing the work completed, the amount owed and the payment deadline.

IR35 (UK)

UK tax legislation that decides whether a contractor is genuinely self employed or an employee in disguise for tax purposes.

Market rate

The prevailing salary or day rate that a qualified person can command for a given role, skill set and location at a given point in time.

Milestone payment

A staged payment released when a defined deliverable is approved, used to share risk between client and freelancer.

NDA (Non disclosure agreement)

A short legal agreement that stops either party sharing confidential information learned during a project.

Passive income

Earnings that continue with little ongoing work after the initial setup, such as digital products, royalties, dividends or rentals.

Payout schedule

When and how often a platform releases earned money to your bank account.

Productised service

A freelance or consulting service packaged with a fixed scope, fixed price, and defined deliverables — sold like a product off a shelf.

Profit margin

What you actually keep after costs, expressed as a percentage of revenue. The number that matters for a side hustle, not gross income.

Rate card

A short, public document that lists the services you offer, the deliverables and the price for each, used to anchor freelance conversations.

Remote work

Paid work performed outside a traditional office, often from home or anywhere with internet access.

Retainer

A recurring monthly fee that buys ongoing access or a fixed number of deliverables, paid in advance.

Salary benchmark

A reference point that compares your compensation to peers in similar roles, levels and locations.

Schedule C (US)

The US tax schedule on which sole proprietors and single member LLCs report business income and expenses.

Scope creep

The gradual expansion of a project's requirements beyond the original agreed brief, typically without additional payment.

Self Assessment (UK)

The process used by HMRC to collect tax on income that is not taxed at source, including most side hustle and freelance earnings.

Side hustle

Any income generating activity you do alongside your main job, contract or studies, usually flexible and skill based.

Skill gap

The distance between the skills you have today and the skills required for a target role, project or rate.

Solopreneur

A person who builds and runs a business entirely alone, without employees, combining entrepreneur ambition with a freelancer's flexibility.

Statement of work (SOW)

A document that defines the deliverables, timeline, acceptance criteria and payment terms for a specific project or engagement.

Subscription audit

A structured review of recurring charges on your bank or card statements to cancel what you no longer use.

Trading allowance (UK)

A UK specific tax free allowance of £1,000 per tax year for casual self employed and side hustle income.

Umbrella company (UK)

An employer of record that employs contractors on behalf of clients, handling payroll, tax and National Insurance in exchange for a management fee.