If you're self-employed, you have to fill in a Self Assessment tax return every year. The Inland Revenue should send you the paper forms you'll need, or you can complete your tax return online with us.
You'll be asked for details about profits from your business and other income that you'll have to pay tax on - such as rental income. This is used to work out how much tax and National Insurance contributions (NICs) you have to pay. You must provide the correct information and get it to The Inland Revenue on time.
We provide an easy to use software with Kashflow to be able to keep your books up to date and benefit from Uktaxes advice i¡on profit and taxes. free 60 day trial for corporate tax, Partnerships and self employed.
You're required by law to keep records of all relevant information. Doing this also makes filling in your tax return a lot easier.
Tax allowances and reliefs if you're self-employed
If you're self-employed there are various deductions, reliefs and allowances that you can get to reduce your tax bill. You deduct some from your gross business income to work out your profits. And you deduct others from your profits after you've worked them out.
You can deduct most of your business expenditure to work out your profits - but you can't deduct any private expenditure. And you can claim special reliefs for 'capital expenditure' - one-off expenditure to buy or improve an asset you keep and use for your business.
You can usually get deductions, reliefs and allowances for the current tax year and for the previous six years - but there are some where you have a shorter time limit for claiming.
At Uktaxes we will tells you about the tax allowances, deductions and reliefs you can get as a self-employed business person.
If you’re self-employed you should register with HMRC immediately. If you don’t, you may have to pay a penalty. In most cases you can register online.
How and when to register
When you become self-employed you must register for Income Tax and National Insurance purposes with HM Revenue & Customs (HMRC). There are three ways that you can register:
online using this links (recommended for most)
phone - by calling the Newly Self-employed Helpline 0845 915 451
post - by downloading and completing form CWF1
If you are self-employed in a partnership, each of the partners must register separately.
If you find all these paperwork too complicated, we can help you register and get you started as a self employed. Simply contact us and we will take care of everything and send you a quote. You will be able to take advantage of a discount price and 60 day free trial with our easy to use software to keep your accounts up to date with Kashflow.
Also download Working for yourself guide from the Inland Revenue.