Category: Self-Employed Tax

The Short Answer: What is the difference? The “Cash Basis” Update (Important for 2024/25) Before you read further, check if you use “Cash Basis” accounting. 1. Revenue Expenses (Day-to-Day Costs) These are the ongoing costs of keeping your business alive. You can deduct the full cost of these from your turnover to lower your taxable…

The immediate answer is £100. If you file your tax return even one day late, HMRC automatically charges you a £100 fixed penalty. The Full Cost: It Gets Worse if You Wait That £100 is just the starting point. If you ignore the deadline, the fines escalate rapidly based on a strict timeline. Here is…

In simple terms, Failure to Notify is when you start earning money on your own (self-employment) but do not tell HMRC about it by the deadline. If you started your business in the last tax year and didn’t register for Self Assessment by 5 October of the current year, you have committed a “Failure to…

Self-employed people in the UK pay tax by completing a Self Assessment tax return each year and paying Income Tax and National Insurance on their profits. Understanding how it works When you work for yourself, you’re responsible for calculating your own tax. HMRC won’t do it automatically.You need to register as self-employed, keep records of…

No, your accountant should never need your personal bank login details, PIN, or password. You should never share these with anyone. Giving out this information is a major security risk, could lead to fraud, and likely breaks the terms and conditions of your bank account. While they don’t need access to log in, they do…

No, it isn’t necessarily harder to get a mortgage as self-employed, but the process is different and requires more paperwork. Lenders just want to be sure you have a steady and reliable income to afford the monthly payments. Instead of showing payslips from an employer, you have to prove your income in other ways. How…

To avoid 40% tax self employed (known as the Higher Rate), you must legally reduce your taxable profits to below £50,271. The two most effective ways to do this are by claiming all your allowable business expenses and by making pension contributions. This article explains how this works in simple terms. (Note: These figures are…

If you need your SA302 (Tax Calculation) for a loan application, the quickest way to get it is usually through the HMRC website. Option 1: Download from HMRC Website If you filed your tax return yourself via GOV.UK, follow these steps: Note: If you just submitted your return, you usually have to wait 72 hours…

Yes, you absolutely can get a loan if you work for yourself in the UK. While high street banks often find it easier to lend to people with regular PAYE payslips, many specialist lenders now provide loans for self-employed workers, contractors, and freelancers. You just need to be prepared to prove your income is stable…

If HMRC has asked you to complete a tax self assessment, it’s usually for a simple reason: they believe you have earned income that hasn’t been taxed automatically (like wages are). The most common reason is that you have registered as a self-employed sole trader or have become a landlord. What is a Tax Self…