Category: Self-Employed Tax
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When and How You Must register for mtd for income tax
Making Tax Digital (MTD) for Income Tax is a major change to the way self-employed people in the UK report their income and expenses to HMRC, and if you run your own business, work as a freelancer or earn money from property, it is important to understand whether the new rules apply to you and…
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Who Needs to Do Self Assessment?
If you earn money outside regular employment, you may need to complete a Self Assessment tax return and report your income to HM Revenue and Customs (HMRC). This applies to many self-employed people, sole traders, landlords and individuals with other types of income that are not fully taxed through PAYE. However, not everyone who earns…
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Landlord Expenses in the UK: Allowable Expenses You Can Claim Against Rental Income
If you rent out a property in the UK, you will probably have a number of costs throughout the year, from repairs and insurance to letting agent fees, accountancy fees and mortgage costs. The important thing to understand is that not every cost you pay as a landlord can simply be deducted from your rental…
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How to Create an Invoice as a Self-Employed Person in the UK: What to Include and How to Keep Records
If you are self-employed in the UK, creating invoices is something you will probably need to do regularly, whether you provide professional services, work as a contractor, carry out building work, sell products, or run a small business from home. An invoice is simply a document that tells your customer what you have provided, how…
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HMRC Tax Investigation: What Happens When HMRC Checks Your Tax Return?
HMRC Tax Investigation: What Happens When HMRC Checks Your Tax Return? Receiving a letter from HMRC saying that they want to check your tax return can be worrying, particularly if you are self-employed and your tax return contains a lot of figures, business expenses and other information. However, an HMRC tax investigation does not automatically…
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Self Employed Losses: Can I Claim Tax Relief for a Business Loss?
Running a self-employed business does not always mean making a profit. Some years can be difficult, particularly when you are starting a new business, buying equipment, investing in advertising or simply dealing with a period when your sales are lower than expected. The good news is that a genuine trading loss does not necessarily mean…
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Making Tax Digital Quarterly Reporting
Making Tax Digital (MTD) for Income Tax is now becoming a major change for self-employed people and landlords in the UK. From 6 April 2026, many sole traders and landlords with qualifying income above £50,000 have had to keep digital records and send quarterly updates to HMRC using compatible software. The rules will then gradually…
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Self-Employed: Class 2 and Class 4 national insurance contributions Explained
If you are self-employed in the UK, you may have heard of Class 2 and Class 4 National Insurance contributions and wondered whether you actually have to pay them. National Insurance can be confusing because the rules for self-employed people are different from those for employees, and the rules around Class 2 National Insurance changed…
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Capital Allowances: Claiming Tax Relief on Equipment and Vehicles
If you are self-employed or run a small business in the UK, buying equipment, machinery or a vehicle can be a significant expense. However, the tax system may allow you to claim tax relief on qualifying purchases through capital allowances. Capital allowances can be particularly useful when you invest in items that you expect to…
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Self Assessment Register as a Sole Trader: Step-by-Step Guide
Starting work for yourself in the UK is relatively straightforward, but one of the first things you need to understand is how to register as a sole trader and tell HM Revenue and Customs (HMRC) that you are self-employed. If you are starting a business on your own, you will normally operate as a sole…