What you need to know
about the tax.
Practical UK tax guidance for freelancers and self-employed professionals — a new article every morning.
VAT Reverse Charge on Imported Services: What UK Businesses Must Know
If your business buys digital, consultancy, or professional services from overseas suppliers, you may owe VAT even if the supplier didn't charge it. The VAT reverse charge shifts the reporting obligation to you as the UK recipient. Here's exactly how it works and what you need to do.
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Travel & Subsistence Claims: What UK Directors & Staff Can Claim
If your limited company employs directors or staff, understanding HMRC's travel and subsistence rules can save significant tax. This guide explains exactly what qualifies as a tax-free reimbursement, what records you need to keep, and the common mistakes that trigger HMRC scrutiny.
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Home Working Expenses: Flat Rate vs Actual Costs for Sole Traders
If you work from home as a freelancer or sole trader, HMRC gives you two ways to claim tax relief on your household costs. Choosing the wrong method could leave money on the table. Here is how to work out which approach puts more cash back in your pocket.
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MTD ITSA Quarterly Payments: Avoid Underpayment Penalties
Making Tax Digital for Income Tax Self Assessment is reshaping how sole traders and freelancers report and pay tax. Understanding how to estimate your quarterly payments accurately is now essential to avoid costly penalties. Here is everything you need to know to stay compliant and cash-flow confident.
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Cash Basis Accounting: Save Tax and Switch on Self Assessment
Cash basis accounting lets sole traders and freelancers pay tax only on money they've actually received, not invoices they're still waiting on. It can reduce your tax bill, simplify your bookkeeping, and ease your cash flow. Here's exactly how it works and how to switch.
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MTD ITSA: Prepare Your Records and Avoid Submission Errors
Making Tax Digital for Income Tax is now live for sole traders and freelancers earning over £50,000, with lower thresholds rolling in from April 2027. Getting your record-keeping right from the start will save you penalties and stress. Here is exactly what you need to do.
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Interest Relief Restrictions: A Guide for Growing UK Companies
As your limited company grows and takes on more debt financing, HMRC's Corporate Interest Restriction rules can limit how much interest you can deduct against your profits. Understanding the thresholds and calculations could save your company thousands in unexpected tax bills. Here's what directors need to know in 2026.
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VAT Partial Exemption: How to Calculate Your Recoverable Input Tax
If your business makes both taxable and exempt supplies, you cannot reclaim all your VAT on costs — but you can reclaim some. Understanding partial exemption rules helps you avoid overclaiming, stay compliant with HMRC, and recover every penny you're legitimately entitled to.
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Transfer Pricing Rules for UK Companies: What Directors Must Know
If your limited company transacts with related parties — such as a parent company, subsidiary, or connected individual — HMRC's transfer pricing rules may apply. Getting this wrong can lead to tax adjustments, penalties, and costly enquiries. This guide explains the rules, who they affect, and what documentation you need.
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Fixtures & Fittings: Maximise Tax Relief With Correct Asset Allocation
Misclassifying fixtures and fittings between plant and machinery and chattels is one of the most costly mistakes a limited company director can make. Get it wrong and you could miss out on thousands of pounds in capital allowances. This guide explains exactly how to allocate assets correctly under current HMRC rules.
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Mileage vs. Actual Costs: Which Saves More Tax for Sole Traders?
If you use your own vehicle for work, HMRC gives you two ways to claim tax relief — but choosing the wrong method could cost you hundreds of pounds a year. This guide breaks down both options so you can make the right call for your situation.
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Home Office Deduction: What You Can Claim Under MTD ITSA Rules
Working from home as a freelancer or sole trader? You could be claiming valuable tax relief on your home office costs. Here's exactly how to calculate your allowable workspace claim under the MTD ITSA framework.
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Trading Allowance: Claim £1,000 Relief or Declare All Income?
The £1,000 trading allowance can simplify your tax affairs, but it is not always the best option for every sole trader or freelancer. Understanding when to claim it — and when to ignore it — could save you time, money, and a headache at Self Assessment time. Here is what you need to know for the 2025/26 tax year.
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Capital Allowances on Plant & Machinery: How to Claim the AIA
Capital allowances let you deduct the cost of business equipment from your taxable profits — but knowing which assets qualify and how to claim correctly is essential. This guide covers plant and machinery rules, the Annual Investment Allowance, and common mistakes to avoid. Relevant for both sole traders and limited company directors.
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Timing Your Dividend Payments: Cut Tax Bills the Smart Way
Paying yourself dividends at the right time can make a significant difference to your overall tax bill as a limited company director. This guide explains how to use the tax year, allowances, and corporation tax rules to your advantage. Get it right and you could keep thousands more in your pocket each year.
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Goodwill Amortisation: Why It's Not Tax Deductible in the UK
If your limited company has goodwill on its balance sheet, you might assume amortising it reduces your tax bill. In most cases, it doesn't — and understanding why can save you from a costly planning mistake. Here's what UK company directors need to know.
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Mixed-Use Property: Claim the Right Tax Relief as a Landlord
If you rent out a property that also serves a personal or business purpose, apportioning your mortgage interest and council tax correctly is essential. Getting this wrong can mean overclaiming relief or missing out entirely. Here is what UK landlords need to know in 2026.
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VAT Flat Rate Scheme: When to Switch Out and Reclaim Input Tax
The VAT Flat Rate Scheme can simplify your returns, but staying on it too long could cost you thousands. Learn the warning signs that it's time to leave, and how to reclaim input VAT before you miss your chance.
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How to Correct Past Self Assessment Returns: A Practical Guide
Made a mistake on a previous Self Assessment return? You have options, but time limits matter. This guide explains how to amend returns, what happens when HMRC finds errors first, and how to protect yourself from unexpected tax bills.
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Statutory Interest on Late Corporation Tax: Calculate & Cut Your Bill
Missing your corporation tax payment deadline triggers statutory interest charges that can quietly inflate your tax bill. This guide explains exactly how HMRC calculates late payment interest, what rates apply from April 2025, and the practical steps limited company directors can take to avoid or reduce the charge.
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MTD ITSA Quarterly Updates: Avoid Errors and Late Penalties
Making Tax Digital for Income Tax Self Assessment is now live for many sole traders and freelancers, and quarterly updates are a core part of the new regime. Filing errors and missed deadlines can trigger automatic penalties, but most are entirely avoidable. Here is what you need to know to stay compliant and fine-free.
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CIS Deductions: How Subcontractors Can Reclaim Withheld Tax
If you work in construction as a subcontractor, contractors may be deducting 20% or even 30% from your payments before you see a penny. The good news is that this withheld tax is not lost — here is exactly how to reclaim it through HMRC.
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Claim £26/Week Working From Home Tax Relief Without Keeping Records
If you work from home as a sole trader or freelancer, HMRC's Simplified Expenses Scheme lets you claim a flat-rate deduction for home working costs without receipts or calculations. This article explains exactly how the scheme works, what you can claim, and how to apply it on your Self Assessment tax return.
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Related Party Transactions: Document Transfer Pricing to Beat HMRC
If your limited company transacts with connected parties — directors, shareholders, or related businesses — HMRC expects those deals to reflect arm's length commercial terms. Poor documentation is one of the fastest routes to a tax inquiry. Here is how to get it right.
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Claim Pre-Trading Costs Before You Launch Under Section 401 ITA 2007
Spent money before your business officially started trading? You may still be able to claim tax relief on those early costs. Section 401 ITA 2007 lets sole traders and freelancers treat pre-trading expenditure as a deductible expense on their first day of trading.
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Capital Allowances on Plant & Machinery: Maximise Your First Year Relief
If your business buys equipment, machinery, or tools, you could claim significant tax relief through capital allowances. This guide explains exactly what qualifies as plant and machinery, how the Annual Investment Allowance works, and how to make sure you're claiming every penny you're entitled to. Relevant for both sole traders and limited companies.
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Carried Forward Trading Losses: Maximise Your Relief Options
If your limited company has made a trading loss, you don't have to write it off. Carried forward losses can be offset against future profits to reduce your Corporation Tax bill, but there are rules you need to follow. Here's how to make the most of them.
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Claim the Annual Investment Allowance Before Your Year-End
The Annual Investment Allowance lets UK businesses deduct the full cost of plant and machinery against taxable profits in the year of purchase. With the AIA set at £1 million, timing your spending correctly can make a significant difference to your tax bill. Here is what you need to know before your accounting year closes.
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Goodwill Amortisation: Why HMRC May Deny Your Corp Tax Deduction
If your limited company has goodwill on its balance sheet, you may be expecting a corporation tax deduction as it amortises. But HMRC's rules are strict, and many companies find their deduction is denied entirely. Here's what you need to know before filing.
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VAT Partial Exemption: Calculate Your Recoverable Input Tax Correctly
If your limited company makes both VAT-taxable and VAT-exempt supplies, you fall into the partial exemption rules — and getting the calculation wrong can trigger costly HMRC adjustments. This guide walks you through the standard method, the de minimis limits, and the annual adjustment you must not overlook.
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