Freelance income, sortedso you can keep creating.

• Set up straightforward digital bookkeeping, with receipt capture from your phone
• Prepare and file Self Assessment, or company accounts and your personal return if you are limited
• Work out allowable expenses: home working, equipment, software, travel and training
• Handle Making Tax Digital quarterly updates once you are within scope
• Advise on VAT registration and whether the Flat Rate Scheme suits your trade
• Model sole trader versus limited company each year and switch you if it pays
• Review contracts for IR35 risk and explain what the client's determination means
• Tell you what to set aside each month so January is not a surprise

Trading allowance

The first £1,000 of self-employed income is tax-free. Side-income freelancers below that need not file; above it, you deduct either the allowance or actual expenses.

Working from home

Claim a flat £10 to £26 a month based on hours worked at home, or a proportion of actual costs such as rent, utilities and broadband based on rooms and time used for business.

Flat Rate VAT

Businesses with turnover under £150,000 can pay a fixed percentage of gross turnover instead of tracking input VAT. Limited-cost traders, who spend under 2% of turnover on goods, must use 16.5%, which removes most of the benefit.

Off-payroll working (IR35)

If you work through your own company for a medium or large client, the client decides your employment status and may deduct tax at source. For small clients, the company decides. Genuine multi-client freelancing is usually outside IR35.

Training and equipment

Training that updates existing skills is deductible; learning a new trade generally is not. Equipment such as laptops and cameras qualifies for the Annual Investment Allowance in the year bought.

Rules and rates are those in force for 2026/27 at the time of writing. Check your own position before acting.