Today, an increasing number of individuals are opting to start their own businesses or work as self-employed in the United Kingdom.
However, the tax laws in the UK are often intricate and subject to frequent updates, making it challenging to swiftly grasp the taxation system.
Today, our tax team will provide answers to common questions raised by our clients.
Self-Employed Tax Return
When venturing into self-employment, being aware of how to report income for tax purposes is crucial.
HMRC has specific tax regulations for the self-employed, sole traders, and freelancers.
Once you have gathered your bills from April of the previous year to April of the current year.
You need to fill out forms and submit them before the deadline.
Typically, an annual self-assessment tax return must be submitted, accompanied by the payment of the applicable taxes.
Tax Return Deadlines
As a self-employed or sole trader, mark January 31st on your calendar.
You must complete your tax return and settle any outstanding taxes by this date.
Our team recommends taking action as early as possible to avoid potential fines due to unforeseen factors and bank transfer times.
When completing your tax return, it’s essential to retain all supporting documents such as receipts, invoices, and bank statements as evidence.
If you are unfamiliar with self-assessment tax returns, we strongly advise seeking professional assistance.
When to Start Taxing as Self-Employed
Ideally, we recommend reporting to HMRC once you generate your first income to preempt any future audits.
Upon registering as a self-employed professional, you are obligated to fulfill UK tax responsibilities, including timely reporting, maintaining financial records, and settling tax liabilities.
Different clients may face unique circumstances, and decisions should be made based on individual situations.
Our accounting team not only assists the self-employed but also aids overseas e-commerce businesses and companies dealing with VAT issues.
If you have any questions, feel free to consult our team for assistance.
