Category: Tax

Starting as self-employed in the UK comes with a few tax surprises that are easy to miss. For example, a business expense is not automatically allowable just because you paid for it while working. The rules can be more specific, particularly for costs such as working from home, travel, meals and equipment. Another common trap…
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You submitted your Self Assessment, closed your laptop — and then noticed a mistake. Maybe you entered the wrong figure, forgot an allowable expense or left out some information. The good news is that discovering an error does not automatically mean you will be fined. In most cases, you can amend your return within 12…
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Starting self-employed work halfway through the UK tax year can make your first tax return less straightforward than expected. Your tax position is based on the income and allowable expenses connected with your self-employed activity, but you may also need to take other income from the same tax year into account. So starting in September,…
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Starting work as a self-employed person in the UK may seem straightforward, but staying on top of your tax responsibilities requires attention to detail. Common mistakes include registering with HMRC too late, claiming the wrong expenses, failing to keep accurate records and missing important tax deadlines. Another common issue is ignoring messages or requests from…
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Your records should contain enough information about each transaction, including the date, amount and description of the income or expense and, where relevant, details of the customer or supplier. This helps show where the figures in your accounts come from and how your tax liability was calculated. Photos or scans of receipts can be useful…
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Starting your self-employed business halfway through the tax year does not mean you only have to deal with HMRC for half a year. The UK tax year runs from 6 April to 5 April, and your Self Assessment covers the income and expenses from the period you were actually trading. For example, if you start…
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If you are new to Self Assessment, your first tax bill may be higher than expected because you may need to pay your tax bill plus the first payment on account for the next tax year. Payments on account are advance payments towards your next Self Assessment tax bill. Each payment is normally 50% of…
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Not every expense you pay while running a business is automatically tax-deductible. The key question is whether the expense was incurred wholly and exclusively for business purposes. Common mistakes include claiming personal meals, everyday clothing, private travel or household purchases as business expenses. Some costs can have both business and personal use, such as a…
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For the 2026/27 tax year, the main UK Corporation Tax rate remains at 25%, while companies with profits of up to £50,000 generally pay the 19% Small Profits Rate. For profits between £50,000 and £250,000, Marginal Relief may apply. This means the effective tax rate increases gradually rather than jumping directly from 19% to 25%.…
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If you are required to file a Self Assessment tax return but miss the deadline, HMRC may charge penalties even if you have no tax to pay. The initial late filing penalty is £100, and additional penalties can apply if the return remains outstanding. Interest will also be charged on any unpaid tax, and further…
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