Self-employed tax made easy

If you’re earning any untaxed income within the tax year (6 April to 5 April), you need to report it to HMRC, regardless of the amount. If you earn more than your Personal Allowance of £12,570, you’ll need to start paying tax on your income.

The amount you pay depends on how much you make.

You’ll most likely only need to pay Income Tax and National Insurance, unless you have capital gains or anything else to report.

Learn more here.

The tax return filing and payment deadline is the 31st of January the year after the tax year you’re paying for.

However, your tax bill will actually be split in two so you’ll only have to pay half your bill on 31st Jan and pay the second half on 31st July.

Side hustles are considered another form of work alongside your main employment. Because it’s untaxed income, you need to declare it to HMRC.

However, everyone in the UK has a tax-free Trading Allowance of £1,000. If you earn less than this, you don’t need to report your untaxed income to HMRC. 

If you do earn more than £1,000, you’ll need to file a Self Assessment tax return and pay tax.

A contractor, someone who works for a client or company, can either be self-employed or an employee of an umbrella company. 

If you’re self-employed and are a sole trader, you can file a tax return to report your income.

If you work for a client through your own limited company and pay yourself a salary, you’ll pay tax via PAYE.

If you only pay yourself via dividends, you’ll need to file a tax return and pay dividend tax. 

If you work for an agency or umbrella company, you’re an employee and will pay tax through PAYE.

Anything you buy for work, that you only use for work, can be deducted as an expense from your income. 

These include things like:

• Parking costs
• Car lease payments
• Mileage
• Insurance and repairs
• Breakdown cover
• Work phone bill 

And more! Check out our delivery driver tax guide for all the information you need.

If you’re part of the Construction Industry Scheme (CIS), you’ll only need to pay 20% tax. 

If you’re not registered, you’ll pay 30% tax. 

It’s mandatory for contractors to register for CIS but as a subcontractor, you can choose. 

Learn how to register here.

You’ll have to pay Income Tax and National Insurance (Class 2 and Class 4). 

You do this by filing a tax return with HMRC to declare all your income. 

If you have side hustles alongside your regular work or capital gains, those will be subject to additional taxes too.

Yes, you can! 

You can claim things like office rent, office decorations, work laptop/phone, protective gear for construction work, uniforms, fuel, and lots more!

Get the full list and all the details in our guide.