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. 113 articles, page 4 of 5.
PSC Rules & IR35: How to Stay Compliant as a Contractor
If you operate through a limited company and provide services to clients, IR35 and the Personal Service Company rules could significantly affect your tax position. Understanding how HMRC identifies disguised employment is essential for every contractor. This guide explains the key tests, your obligations, and practical steps to protect yourself.
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MTD ITSA Quarterly Reporting: Organise Your Records Before April 2026
Making Tax Digital for Income Tax Self Assessment is already live for sole traders and landlords earning over £50,000. If you missed the April 2026 deadline, here is how to get your record-keeping in order now and avoid penalties going forward.
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Bridging Loans and Interest: Claiming Tax Relief When Refinancing
Refinancing business property with a bridging loan can trigger complex tax questions around interest relief. This guide explains exactly how UK limited company directors can claim tax relief on bridging loan interest, what HMRC expects, and the common mistakes to avoid.
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Trading Allowance: When £1,000 Beats Claiming Your Actual Expenses
The £1,000 trading allowance lets sole traders earn up to £1,000 tax-free without filing a Self Assessment return. But even if you earn more, claiming the allowance instead of actual expenses can sometimes save you more tax. Here's how to decide which route is right for you.
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Intercompany Loans: How to Document Them Before HMRC Comes Knocking
HMRC is increasingly scrutinising related party transactions, particularly loans between connected companies or between a director and their limited company. Getting the documentation wrong can trigger tax adjustments, penalties, and unexpected Corporation Tax bills. Here is what you need to know to stay compliant.
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Mileage Claims for Sole Traders: Simplified vs Actual Costs
As a sole trader, you have a choice when claiming vehicle costs: use HMRC's simplified flat rates or track every actual expense. This article explains why the simplified expenses method wins for most freelancers and sole traders, and exactly how to use it.
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Home Office Expenses: Why the Fixed Rate Claim Often Costs You
HMRC's flat rate home office allowance is quick and simple, but for most freelancers and sole traders it leaves real money on the table. Understanding the actual cost method could significantly reduce your tax bill. Here's how to calculate which approach works best for you.
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Pension Contributions for Sole Traders: Maximise Your Tax Relief
As a sole trader, pension contributions are one of the most powerful tools available to reduce your tax bill while securing your financial future. Unlike employed workers, you have full control over how much you contribute and when. This guide explains exactly how pension tax relief works and how to make the most of it in the 2025/26 and 2026/27 tax years.
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Subsistence Costs for Sole Traders: What Meals You Can Claim
Claiming meals and refreshments as a sole trader is possible, but HMRC has strict rules about what qualifies. This guide explains exactly when subsistence costs are allowable, what you can claim, and how to keep records that will hold up to scrutiny.
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MTD ITSA Compatible Software: Choose Right & Avoid Errors
Making Tax Digital for Income Tax is now live for sole traders and freelancers earning over £50,000, with the £30,000 threshold arriving in April 2027. Choosing the wrong software — or setting it up incorrectly — can trigger filing failures and HMRC penalties. This guide helps you pick the right tool and sidestep the most common integration pitfalls.
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VAT Registration Threshold 2024: Should Sole Traders Register Early?
The VAT registration threshold rose to £90,000 in April 2024, giving sole traders more breathing room before mandatory registration. But waiting until you hit the limit isn't always the smartest move. Here's how to decide what's right for your business.
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How to Correct Old Self Assessment Returns Before HMRC Acts
Made a mistake on a previous Self Assessment return? You have a limited window to put things right before HMRC comes to you. This guide explains exactly how to amend old tax years, what deadlines apply, and how to reduce your risk of investigation.
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Capital Allowances on Plant & Machinery: Full Expensing vs FYAs
If your limited company is investing in plant and machinery, choosing the right capital allowance can make a significant difference to your tax bill. Full Expensing and First Year Allowances are both powerful reliefs, but they work differently and suit different situations. Here's how to make the most of both in 2025.
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Mixed-Use Property: How to Split Costs Between Business and Home
If you run your business from a property where you also live, HMRC expects you to apportion your expenses carefully. Getting this right means you claim everything you're entitled to without triggering an unwanted tax bill. Here's exactly how to do it.
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Trading Allowance vs Actual Expenses: Which Saves You More Tax?
Sole traders in 2025/26 can choose between claiming the £1,000 trading allowance or deducting their actual business expenses — but picking the wrong option could cost you money. This guide explains exactly how each method works and how to decide which one puts more cash in your pocket.
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Timing Your Trading Cessation to Cut Tax on Your Final Year
Stopping your sole trader business at the right time can significantly reduce your final tax bill. This guide explains how to use overlap relief, manage your closing accounting period, and choose the smartest cessation date to keep more of your hard-earned money.
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Overnight Trips & Accommodation: Claiming Travel Costs as a Sole Trader
If your work takes you away from home overnight, you may be able to claim accommodation, meals, and travel as a tax-deductible expense. But HMRC's 'wholly and exclusively' test means you need to get the details right. Here's what sole traders and freelancers need to know.
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Home Office Deduction: What Sole Traders Can Claim in 2026
Running your business from home means you can claim a portion of your household costs as a tax-deductible expense. HMRC offers two methods for calculating this deduction, and choosing the right one could save you meaningful money. Here is exactly how each approach works and which might suit your situation.
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Software Subscriptions for Sole Traders: Expense or Capital Asset?
Knowing whether your software costs count as a revenue expense or a capital asset matters more than ever under MTD ITSA. Get the classification wrong and you could be claiming relief in the wrong place — or missing out entirely. Here is what sole traders need to know.
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Employee vs Contractor: The Real Tax Cost of Getting It Wrong
Misclassifying workers as contractors when they should be employees is one of the most expensive mistakes a UK business can make. HMRC actively targets this area, and the financial consequences can stretch back years. Whether you hire contractors or work as one, understanding the rules could save you thousands.
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Goodwill Amortisation: Claim Corporation Tax Relief on Acquisitions
When your limited company acquires a business, the goodwill you pay for can qualify for valuable corporation tax relief. Understanding the rules around intangible fixed assets and goodwill amortisation could significantly reduce your tax bill. Here is what company directors need to know.
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Vehicle Finance vs Operating Leases: Tax Rules for Sole Traders
Choosing how to finance a vehicle can have a significant impact on your tax bill as a sole trader. Finance leases and operating leases are treated very differently by HMRC, and picking the wrong structure could mean missing out on valuable allowances. Here is what you need to know before signing any agreement.
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MTD ITSA Quarterly Reporting: Avoid Errors and Late Penalties
Making Tax Digital for Income Tax Self Assessment is now a reality for many sole traders and freelancers. Quarterly reporting brings new deadlines and new risks, but with the right habits you can file accurately and on time. Here is what you need to know to stay compliant and penalty-free.
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Bridging Loans & Interest Relief for UK Property Developers
If your limited company uses bridging finance to fund property development, the interest costs can be a significant overhead. Understanding exactly how and when to claim tax relief on that interest could meaningfully reduce your Corporation Tax bill. This guide explains the rules, the pitfalls, and the practical steps to get it right.
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