What you need to know
about the tax.
Practical UK tax guidance for freelancers and self-employed professionals — AI-drafted from HMRC guidance, checked by a person before it goes up. How we write these. 119 articles, page 2 of 5.
Home Office Expenses for Sole Traders: Fixed Rate vs Actual Costs
If you work from home as a sole trader, HMRC lets you claim a portion of your household bills as a business expense. You can use either the simplified fixed rate method or calculate your actual costs through apportionment. This guide explains both approaches so you can choose the one that saves you the most tax.
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Statutory Interest on Late Corporation Tax: Calculate It First
If your limited company pays corporation tax late, HMRC will charge statutory interest from the day payment was due. Understanding how this interest is calculated means you can estimate the damage before HMRC sends you a bill — and make informed decisions about when and how much to pay.
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Capital Allowances on Plant & Machinery: More Than Just an Expense
When you buy equipment for your business, HMRC doesn't always let you deduct the full cost as a simple expense. Understanding capital allowances — particularly the Annual Investment Allowance — can dramatically reduce your tax bill. Here's what every sole trader and limited company director needs to know.
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Dissolution Relief: Cut CGT When Closing Your Limited Company
Closing your limited company doesn't have to mean a hefty tax bill. Dissolution Relief (formerly known as Extra-Statutory Concession C16) lets eligible directors extract final company assets at capital gains tax rates rather than income tax rates. Here's how to use it correctly and keep more of what you've built.
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Mixed-Use Property: Splitting Expenses Between Personal and Business Use
If you work from home as a sole trader or freelancer, you can claim a proportion of your household bills as a business expense. Getting the split right is essential — overclaim and HMRC may investigate; underclaim and you lose money. Here is exactly how to do it correctly.
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VAT Recovery on Pre-Registration Expenses: What You Can Claim
Many new VAT-registered businesses don't realise they can reclaim VAT on purchases made before their registration date. HMRC allows recovery on certain pre-registration costs, but strict time limits and conditions apply. Here's exactly what you can claim and how to do it correctly.
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MTD ITSA Quarterly Reporting: Avoid Common Data Errors
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) became mandatory for many sole traders and freelancers from April 2026. Submitting accurate quarterly updates is now essential to avoid penalties and compliance issues. Here is what you need to know to get your data submissions right.
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Why Your First Tax Returns Don't Match Your Accounting Year
If you've just started out as a sole trader, your first few Self Assessment returns can look confusing — the income on your tax return often doesn't match your accounting year. This is down to HMRC's basis period rules, which were overhauled in 2024 but still affect how your early years are calculated. Here's what you need to know.
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Trading Allowance: £1,000 Relief or Actual Expenses — Which Wins?
The £1,000 trading allowance sounds simple, but claiming it isn't always the smartest move. This guide breaks down exactly when to use it and when claiming actual expenses will save you more tax. Get the calculation right and keep more of your earnings.
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Simplified Expenses: When Fixed Rates Beat Actual Costs for Sole Traders
HMRC's simplified expenses scheme lets sole traders claim flat-rate deductions for vehicles, working from home, and living on business premises. Knowing when to use fixed rates instead of tracking actual costs can save you time, reduce your tax bill, and keep HMRC happy. Here's how to decide which method works best for you.
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VAT Flat Rate Scheme: When It Costs You More Than It Saves
The VAT Flat Rate Scheme can simplify your admin and boost your cash flow — but it's not always the cheapest option. If your costs have risen or your business has changed, you could be paying HMRC more than you need to. Here's how to spot the warning signs and switch back to standard VAT accounting.
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How to Amend Your CT600 After Filing: A Director's Guide
Made a mistake on your Corporation Tax return? You have 12 months from the filing deadline to correct it. This guide walks you through exactly when and how to amend your CT600, and what to do if you miss the window.
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SA302 Adjustment Income: Why HMRC's Figures Differ From Yours
If your SA302 shows a different income figure to what you submitted on your Self Assessment return, you're not alone. HMRC applies adjustments that can catch freelancers and sole traders off guard. Here's what adjustment income means, why it appears, and exactly how to challenge it.
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Overlap Relief: Claim Tax Relief When Going Self-Employed
If you switched from employment to self-employment and your accounting period doesn't align neatly with the tax year, you may have paid tax on the same income twice. Overlap relief exists to fix this, and with the transition to the new tax year basis now complete, understanding how it works is essential. Here's exactly how to claim what you're owed.
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Home Office Expenses: Get Your Deduction Right Without HMRC Scrutiny
Working from home as a freelancer or sole trader means you can claim a portion of your household bills as a business expense. But HMRC looks closely at home office claims, so getting your calculation right is essential. Here is exactly how to do it correctly and confidently.
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Bridging Loans & Interest Relief: Getting It Right on Your CT600
Claiming interest relief on bridging loans through your limited company can be highly tax-efficient — but only if the borrowing is genuinely for business purposes. Directors who blur the line between personal and company borrowing risk losing the deduction entirely and triggering additional tax charges. Here is what you need to know.
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Capital Allowances for Plant & Machinery: Maximise Your Tax Relief
Capital allowances on plant and machinery can significantly reduce your company's tax bill, but getting the claim wrong can trigger costly HMRC challenges. This guide explains how to make the most of the Annual Investment Allowance and First Year Allowances, and how to avoid the pitfalls that catch out limited company directors every year.
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MTD for Income Tax: Choose the Right Software and Avoid Errors
Making Tax Digital for Income Tax is now a reality for sole traders and freelancers with qualifying income. Choosing the right software and avoiding common integration pitfalls can save you hours of frustration and costly mistakes. Here is what you need to know to get it right from the start.
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Penalty Relief for Late VAT Returns: How to Appeal HMRC Charges
Missing a VAT return deadline can trigger automatic penalties under HMRC's points-based system, but relief is available in certain circumstances. This guide explains exactly when HMRC will waive or reduce charges, and how to submit a successful appeal. Whether you run a limited company or operate as a sole trader, understanding your rights can save you hundreds of pounds.
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Mixed Use Property: How to Split Expenses for Tax Relief
If you use your home or another property partly for rental and partly for personal use, HMRC requires you to apportion expenses carefully. Getting this right means you claim the maximum legitimate tax relief without falling foul of the rules. Here is exactly how to do it.
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The £1,250 Tax-Free Rental Allowance Most Landlords Are Missing
The Statutory Property Allowance lets UK landlords earn up to £1,250 of rental income completely tax-free, with no need to log expenses. Yet thousands of sole trader landlords are filing their Self Assessment returns without ever claiming it.
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Trading Allowance: Are You Missing Out on £1,000 Tax-Free Income?
The trading allowance lets self-employed professionals earn up to £1,000 tax-free each year, yet thousands fail to claim it correctly. Whether you're a freelancer with a side income or a sole trader just starting out, this relief could save you money and simplify your tax return. Here's exactly how it works and how to make the most of it.
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Corporate Gift Relief: Tax Deductions on Client Gifts Under £50
Giving clients gifts can strengthen business relationships, but only certain gifts qualify for tax relief. As a limited company director, understanding HMRC's strict rules around the £50 threshold can save you money and keep you compliant. Here's exactly what qualifies and how to claim it correctly.
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Abandonment Losses: Claiming Tax Relief on Failed Investments
When a company investment or subsidiary fails completely, HMRC allows a specific type of capital loss claim called an abandonment loss. Understanding how to claim this relief correctly can unlock significant tax savings for limited company directors. This guide explains who qualifies, what evidence you need, and how to make the claim.
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