Tax return tips for self-employed business owners

Nov 30, 2023
Author: Hawsons
tax return tips for self employed

As a self-employed business owner, you may find it hard to keep on top of tracking accounting records, taxes and expense claims when submitting your self-assessment tax return. Hiring an accountant could benefit you with the following points.

There are many different types of tax you may have to pay, depending on the type of business you are operating. Keep an eye out for these taxes:


What taxes do self-employed individuals and sole traders have to pay?

Sole traders must pay:

  • National insurance contributions (NICs);
  • Income tax on taxable profits they make from their business.

These are paid via Self-Assessment.

Limited companies must pay:

  • Up to 25% corporation tax on profits (unless they are below the £50,000 threshold);
  • National insurance contributions (NICs) on employee salaries and benefits.

If your business turnover is less than £85,000, you do not need to be VAT registered with HMRC.


What expenses can be claimed back?

As a self-employed individual you can claim tax relief on a various expenses, such as office equipment, business travel expenses, stationery, goods for sale, etc.  There are also a number of others which may be claimable, depending on your circumstances:

  • Advertising and marketing costs, involving maintenance of the business website;
  • Required uniform, as well as the laundry costs;
  • Vehicle expenses, i.e. insurance, petrol and any repairs;
  • Business trip expenses, such as accommodation;
  • Where applicable, working from home expenses taking into account heating and electricity, council tax, phone bills and mortgage interest payments.


Why should I use an accountant for my tax return?

You must keep track of your expenses to ensure that you have accurate records from which to submit your tax return. If this is a challenge for you, or you simply do not have the time, it could be worthwhile hiring an accountant to manage your expenses and submit your returns for you.

How can we help?

At Hawsons our dedicated team of tax specialists can offer you advice to support you submitting your self-assessment tax return and ensure that you maximise any legitimate expense claims and reduce your tax bill.

Jenny Brown, Tax Manager

Jenny Brown

Senior Tax Manager, Sheffield
Stephen Charles, Tax Partner

Stephen Charles

Tax Partner, Sheffield

Free initial meeting

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