As a self-employed person in the UK, you are required to report any untaxed income earned within the tax year (6 April to 5 April) to HM Revenue and Customs (HMRC), regardless of the amount. However, you only start paying Income Tax when your annual profits exceed the Personal Allowance, which is £12,570 for the 2024/25 tax year.

The Income Tax rates for England, Wales, and Northern Ireland are as follows:

• Basic Rate: 20% on income from £12,571 to £50,270
• Higher Rate: 40% on income from £50,271 to £125,140
• Additional Rate: 45% on income over £125,140

Please note that Scotland has different tax bands and rates.

In addition to Income Tax, self-employed individuals must pay National Insurance contributions:

• Class 2 National Insurance: £3.45 per week if your profits are £6,725 or more per year.
• Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% on profits over £50,270.
  
  GOV.UK

If you have other income sources, such as capital gains, you may be liable for additional taxes. It's advisable to consult with a tax professional to ensure compliance with all tax obligations.

As a freelancer in the UK, it's essential to be aware of the key deadlines for filing and paying your Self Assessment tax:

• Filing Deadline: Your online tax return for the tax year (6 April to 5 April) must be submitted by 31 January following the end of that tax year. For example, for the tax year ending 5 April 2024, the submission deadline is 31 January 2025.

  GOV.UK

• Payment Deadlines:

  • First Payment: Due by 31 January, covering any tax owed for the previous tax year.
  • Second Payment: If applicable, a second installment is due by 31 July.

These payments are known as 'payments on account' and are advance payments towards your next tax bill. Each installment typically amounts to half of your previous year's tax liability. GOV.UK

Staying informed about these deadlines helps ensure timely compliance and avoids potential penalties.

As a freelancer in the UK, it's essential to be aware of the key deadlines for filing and paying your Self Assessment tax:

• Filing Deadline: Your online tax return for the tax year (6 April to 5 April) must be submitted by 31 January following the end of that tax year. For example, for the tax year ending 5 April 2024, the submission deadline is 31 January 2025.

  GOV.UK

• Payment Deadlines:

  • First Payment: Due by 31 January, covering any tax owed for the previous tax year.
  • Second Payment: If applicable, a second installment is due by 31 July.

These payments are known as 'payments on account' and are advance payments towards your next tax bill. Each installment typically amounts to half of your previous year's tax liability.

Staying informed about these deadlines helps ensure timely compliance and avoids potential penalties.

As a contractor in the UK, your tax responsibilities vary based on your employment structure:

1. Self-Employed (Sole Trader):

   • Tax Reporting: You're required to register for Self Assessment with HM Revenue and Customs (HMRC) and annually file a tax return detailing your income and expenses.
   • Tax Payments: Pay Income Tax and National Insurance contributions on your profits.

2. Limited Company Director:

   • Salary: If you draw a salary, it's processed via the Pay As You Earn (PAYE) system, with Income Tax and National Insurance deducted at source.
   • Dividends: Dividends are subject to Dividend Tax, which you report and pay through your Self Assessment tax return.

3. Employee of an Umbrella Company:

   • Tax Processing: The umbrella company employs you and handles all tax deductions through PAYE, including Income Tax and National Insurance.
   • Payslips: You'll receive payslips showing gross pay and all deductions, similar to traditional employment.

It's crucial to understand your specific employment status, as it directly influences your tax obligations and reporting requirements. Consulting with a tax professional can provide personalized guidance tailored to your circumstances.

As a self-employed delivery driver in the UK, you can deduct certain business-related expenses from your taxable income. These allowable expenses include:

• Vehicle Expenses: Costs such as fuel, repairs and servicing, road tax, MOT fees, insurance (including courier insurance), and breakdown cover.

• Travel Expenses: Parking fees and toll charges incurred during business operations.

• Communication Costs: Business-related mobile phone charges.

• Equipment and Supplies: Items like delivery bags, thermal containers, and protective gear used exclusively for work.

  Office Expenses: Stationery and other office supplies necessary for managing your business.GOV.UK

• Financial Costs: Bank charges and interest on loans taken out to purchase business assets.GOV.UK

• Training Costs: Expenses for courses related to your business, such as refresher driving courses.GOV.UK

It's important to note that if you use your vehicle for both personal and business purposes, you must apportion the expenses accordingly. For example, if 80% of your vehicle use is for business, you can claim 80% of the total vehicle expenses.

Alternatively, you can use the simplified expenses method, claiming a flat rate per business mile:

• Cars and Goods Vehicles: 45p per mile for the first 10,000 miles, and 25p per mile thereafter.

Ensure you maintain accurate records and receipts for all expenses claimed. Consulting with a tax professional can provide personalized guidance tailored to your specific circumstances.

As a self-employed individual in the UK, you are responsible for:

• Income Tax: Applied to your business profits after allowable expenses.
• National Insurance Contributions (NICs):
  • Class 2 NICs: Payable if your profits exceed the Small Profits Threshold.
  • Class 4 NICs: Based on your annual taxable profits.

To fulfill these obligations, you must:

1. Register for Self Assessment: Notify HM Revenue and Customs (HMRC) of your self-employment status.
2. File an Annual Tax Return: Report all income and expenses for each tax year.
3. Pay Due Taxes: Settle any Income Tax and NICs owed by the specified deadlines.

If you have additional income streams, such as:

• Side Hustles: Earnings from secondary ventures.
• Capital Gains: Profits from selling assets like property or investments.

These may be subject to additional taxes. It's essential to report all sources of income to HMRC to ensure compliance and avoid penalties.

For detailed guidance, refer to the Self Assessment section on GOV.UK.