For employees, working at home is a privilege that comes with years of trying to convince your boss that you're not going to sit around all day carouselling through Netflix. But for us Freelancers..
A self-assessment tax return (2019/2020) is a bleak affair. The good news is you can keep your tax to a minimum (and TAXO'D the taxman) by knowing your Allowable Expenses, Tax Reliefs & Refunds.
If you are not employed by an employer but are receiving an income than you need to complete a Self Assessment Tax Return so HMRC can assess how much income tax and national insurance you need to pay.
If you work as a freelancer / self-employed (and are not already using TAXO'D). Then you will need to submit a Self-Assessment Tax Return to HMRC which is done online or by post via the SA100 form.
If you work as freelancer / are self-employed then you will need to apply for a UTR. Which is a number assigned by HMRC to be able to complete your Self-Assessment Tax Return.
If you need to inform HMRC about less common types of income, a deduction or even tax relief then you will need to complete the SA101 form in addition to your main SA100 Self Assessment tax return form
If you need to inform HMRC more about your employment income then you will need to complete the SA102 form in addition to your main SA100 Self Assessment tax return
If you need to inform HMRC about any income from self-employment then you will need to complete either the SA103S or the SA103F form in addition to your main SA100 Self Assessment tax return.
If you need to inform HMRC about any income from renting out property in the UK then you will need to complete the SA105 form in addition to your main SA100 Self Assessment tax return.
If you need to inform HMRC about any income from foreign sources then you will need to complete the SA106 form in addition to your main SA100 Self Assessment tax return.
If you need to inform HMRC about any tax you may own from capital gains then you will need to complete the SA108 form in addition to your main SA100 Self Assessment tax return.
For the first time in the 24 year history of self-assessment, HMRC are waiving fines on personal tax returns. Payment still needs to be made by January 31st but the paperwork can be submitted by February 28
In March 2019 HMRC closed their online services portal - HMRC Government Gateway. Since then UK tax filers have been filing their Self Assessment tax return at the replacement system, HMRC Online Services.
The housing market is changing. Holiday Lets and Furnished Holiday Lettings using Airbnb are proving more profitable for landlords, but this income will still need to be declared in your self-assessment.
Thinking about working for yourself? Then you will need an understanding of the taxes you will pay to HMRC. Here is the TAXO'D basic guide to: Understanding Income Tax for Freelancers and the Self Employed.
In this TAXO'D blog post we discuss Income Tax, National Insurance (and how they are both calculated) and other tax benefits that you may be entitled to as a freelancer or a director of your own company.
If you are a delivery rider/driver for one of the UK delivery platforms (Just Eats, Foodhub, Zomato, Deliveroo, Uber Eats) then this TAXO'D guide aims to inform you of your tax obligations on your earnings.
Working as a freelancer and being self-employed means you are always looking for avenues to save money on your tax bill. When travelling for work purposes you should be claiming it as business mileage.