Straight-Talking Tax Support for the Self-Employed in London
You didn’t become self-employed to spend your evenings Googling “what counts as an allowable expense?” or worrying whether HMRC will query your numbers.
Whether you’re invoicing clients between meetings, juggling multiple income streams, or freelancing alongside a full-time role, one thing eventually catches up with everyone working for themselves – the self-employed tax return.
And in London, where income levels, side hustles, and complex work arrangements are common, getting your tax return right matters more than ever.
This page breaks down exactly what self-employed individuals and freelancers need to know, what HMRC expects, and how to stay compliant without drowning in paperwork.
Who Needs to File a Self-Employed Tax Return?
You must file a self-employed tax return if you:
- Work for yourself as a sole trader
- Freelance or contract (outside PAYE)
- Earn more than £1,000 from self-employment in a tax year
- Have multiple income streams (freelance + rental + PAYE)
- Are registered with HMRC as self-employed
Even if your income is irregular or part-time, HMRC still expects accurate reporting once the threshold is crossed.
What Income Must Be Declared?
Your self-employed tax return must include all business income, such as:
- Client invoices (paid or unpaid, depending on accounting method)
- Cash and bank payments
- Overseas income (if UK-resident)
- Platform income (Upwork, Fiverr, Etsy, Amazon, TikTok Shop, etc.)
- Tips, commissions, and referral fees
HMRC is increasingly cross-checking data, especially platform and bank information, so omissions are risky.
Allowable Expenses for the Self-Employed
Claiming the right expenses can significantly reduce your tax bill, but only if done correctly.
Common allowable expenses include:
- Office costs and software subscriptions
- Phone, internet, and IT equipment
- Travel and mileage
- Marketing and advertising
- Professional fees (accountants, legal, subscriptions)
- Training related to your current trade
- Use of home as office (portion-based or flat rate)
Claiming too little means overpaying tax.
Claiming the wrong things can trigger HMRC questions.
Freelancer & Contractor Tax: Common Mistakes
We regularly see London freelancers make avoidable errors, such as:
- Mixing personal and business expenses
- Forgetting smaller but valid costs
- Using the wrong accounting method
- Missing Class 2 & Class 4 National Insurance
- Filing late due to lack of records
- Not planning for payments on account
These mistakes often lead to unexpected tax bills, or penalties that could have been avoided.
Key Deadlines You Shouldn’t Miss
For self-employed individuals:
- 31 October – Paper tax return deadline
- 31 January – Online return & first tax payment
- 31 July – Second payment on account (if applicable)
Late submission or late payment can result in automatic fines, even if you eventually pay the correct tax.
Freelancers With Multiple Income Streams
Many London freelancers earn from:
- Contract work
- Side businesses
- Online platforms
- Rental income
- PAYE employment
These situations require careful reporting and planning, especially when income fluctuates year to year.
A properly prepared self-employed tax return doesn’t just report history, it helps you plan ahead.
Why Self-Employed Londoners Use Accountants
Accountants don’t just “submit forms”.
They help you:
- Understand what HMRC actually expects
- Claim all legitimate expenses
- Avoid penalties and enquiries
- Prepare for future tax bills
- Keep clean records year-round
For many freelancers, the biggest benefit is clarity, knowing where you stand before deadlines hit.
Self-Employed Tax Return Support in London
We help self-employed individuals and freelancers with:
- Accurate preparation and submission of tax returns
- Expense reviews to maximise tax efficiency
- National Insurance calculations
- Advice for first-time self-employed individuals
- Ongoing support, not just once-a-year contact
Whether you’re newly self-employed or have been freelancing for years, getting your tax return right makes everything else easier.
Need Help With Your Self-Employed Tax Return?
If you’d like your self-employed tax return handled properly, without stress, confusion, or last-minute panic, we’re happy to help.
A short conversation can quickly clarify what you need to do next and whether professional support makes sense for you. BOOK YOUR SLOT HERE!
