Self Employment Tax

If you’re feeling confused about how tax works now you’re self-employed then chances are you’re not alone. Income tax and national insurance work slightly differently when you work for yourself. In this section, you’ll find guides to help you understand what taxes you’ll be affected by, how you’ll pay them and top ways to minimise your tax liability.

Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in these guides are legally correct but are for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional. I cannot accept responsibility for any losses or penalties you may incur while following the contents.

Self Employed Tax Basics

Get to grips with the basics of self-employment taxes, what types you’ll need to pay and how much.

Calculating Your Business Profits

The amount of tax you’ll pay is based on your business profits, read these guides to find out more about how you calculate that figure for tax purposes.

Self-Employed Tax Allowances & Reliefs

Find out the common allowance and reliefs you might be able to claim to bring your tax bill down or support you during trickier times.

Tax Losses

If you’re starting out you may make a loss but using them correctly can be beneficial for your tax bill. Find out more about using tax losses in these guides:

Other Helpful Guides

More must-read guides to help you keep on top of your self-employment taxes:

www.goselfemployed.co – small business website with easy-to-follow guides on topics like tax, accounting and business registration for the UK self-employed and Limited Company Directors. Follow on Instagram and Tiktok for more.

A Simple Overview of IR35 for Freelancers

ir35 explained simply

In this simple guide, I’ll give you an overview of IR35 so you can understand what it all means, including how it works, why it was set up over two decades ago and show you how to determine whether you fall ‘inside the rules’ because you are what is known as a ‘disguised employee’.

HMRC Averaging Adjustment

hmrc averaging adjustment

Understand the averaging adjustment for authors, writers and artists with fluctuating income or who receive lump sums of money up-front, to help them spread their tax bill over one or two years.

Trading Profits

Trading profits are the amount of money left over after deducting all your business expenses from your business income. They are shown on a profit and loss account for a specific period of time (normally one year).

Should I Pay Class 2 NICs Voluntarily?

pay class 2 national insurance voluntarily

Depending on your profits from self-employment you may not need to pay Class 2 National Insurance. But you do have the option to pay it voluntarily. So why would anyone pay something they don’t have to? Let’s look at why.

How to Reduce Your Tax Bill if You’re Self-Employed

how to reduce your tax bill if you're self-employed

Your tax bill can be the biggest bill that you need to handle when you’re self-employed. But, there are ways you can reduce your tax bill if you’re self-employed while staying on the right side of the tax man. For example, claiming expenses when self employed. Read on to find out more! How to Reduce … Read more

HMRC Payments on Account Explained

hmrc payments on account

HMRC payments on account can be one of the most surprising tax bills for the self-employed, especially when filing their first tax return for the first time. Here’s everything you need to know about tax bills for the self-employed, how they work and how to budget for them. 1. What are Payments on Account? In a … Read more