Many self-employed people in the UK are surprised when their accountant asks for documents such as a passport, driving licence, or proof of address. But don’t worry—this is a normal and important part of the process. Your accountant isn’t being difficult; they’re following strict legal rules that protect both you and the wider financial system.…

Understanding the tax implications of various insurance policies can be a complex area for self-employed individuals in the UK. When it comes to income protection and key person insurance, the rules are nuanced, primarily revolving around HMRC’s ‘wholly and exclusively’ rule. Standard Income Protection Insurance For the vast majority of self-employed individuals, the premiums paid…

Neonatal Care Pay and Leave is a new right for parents whose babies need to spend an extended period in neonatal care after birth. This support aims to help parents during a challenging time, allowing them to be with their baby without worrying about their income or job. What is it? This new entitlement provides…

If you’re a UK pensioner, you might automatically receive the Winter Fuel Payment to help with your heating bills. This payment can be between £100 and £300. However, there are times when you might need to opt out of receiving it or even pay it back. Opting Out of the Payment Some pensioners may choose…

If you’re self-employed, you might be asking yourself: does painter and decorator need accountant? The short answer is that it’s not a legal requirement, but having one can save you time, reduce stress, and even lower your tax bill. Responsibilities of a Self-Employed Painter and Decorator When you work for yourself, you are fully responsible…

What if I use something for both business and personal reasons? This is a common situation, especially for self-employed individuals. The key rule is that you can only claim the business portion of the cost. You need to work out a fair way to divide the cost between business and personal use [1]. Example: Imagine…

Sometimes, you buy larger items for your business that you’ll use for a long time, like equipment or vehicles. These are called ‘capital assets’. Instead of claiming the full cost as an allowable expense in one go, you claim ‘capital allowances’ over several years. This spreads the tax relief over the item’s useful life. Common…

What are Allowable Expenses? Allowable expenses are simply the costs of running your business. To be ‘allowable’, an expense must be ‘wholly and exclusively’ for business purposes. This means the cost must be entirely for your business and not for personal use. If something is used for both business and personal reasons, you can only…

Even if your self-employed profits are below the Personal Allowance and you don’t anticipate owing any Income Tax, if your gross self-employment income surpasses the £1,000 Trading Allowance in a tax year, you are legally obligated to register for Self Assessment with HMRC. This is a critical step to ensure you are compliant with tax…

Beyond the specific Trading Allowance for self-employment, every individual in the UK has a Personal Allowance. This is a fundamental concept in the UK tax system, representing the amount of income you can earn in a tax year from all sources – including self-employment profits, employment wages, pensions, and rental income – before you begin…