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  • Writer's pictureAccounting Team

Spring Cleaning Your Finances: Essential Tax Tips for Self-Employed Individuals in 2024

Spring is finally here, and with it comes the urge to declutter and freshen up. But why stop at your home? Spring is also the perfect time to give your finances a good spring clean, especially if you're self-employed.


Filing a Self Assessment tax return can be daunting, but with some organisation and these essential tax tips, you can make the process a breeze:

Gather Your Records


The first step is to gather all your income and expense records for the 2023/24 tax year. This includes:


  • Bank statements (personal and business accounts)

  • Invoices issued and received

  • Receipts for business-related expenses (travel, equipment, office supplies, etc.)

  • Mileage logs

  • Records of any government grants received


Maximise Deductible Expenses


Being self-employed allows you to claim a wider range of expenses against your taxable income.  Here are some common deductible expenses to keep in mind:


  • Running costs: Rent, utilities, internet, phone bills for your home office.

  • Travel:  Mileage for business trips, public transport fares.

  • Equipment and software: Costs of computers, printers, industry-specific software subscriptions.

  • Professional fees:  Accountant fees, legal fees related to your business.

  • Training and development:  Courses relevant to your profession.


Keep it organised


A simple spreadsheet or accounting software can help you track your income and expenses throughout the year. This will save you a lot of time and hassle come tax return season.


Understand Your Tax Allowances


The good news is that HMRC offers various tax allowances for self-employed individuals.  These allowances reduce your taxable income, meaning you pay less tax.  Here are a few key ones to be aware of:


  • Trading allowance: Up to £1,000 of your trading profits can be deducted.

  • Capital allowances:  You can claim relief for the cost of certain equipment purchased for your business.

  • Seed Enterprise Investment Scheme (SEIS) relief:  Tax relief for income tax and capital gains tax on investments in qualifying start-up companies.


Don't Forget National Insurance


As a self-employed individual, you're responsible for paying National Insurance contributions.  These contributions go towards your State Pension and other benefits.  There are two types of National Insurance for the self-employed: Class 2 and Class 4. Make sure you understand which ones apply to you and how much you need to pay.


Get Professional Help


If you're feeling overwhelmed by the complexities of self-employment tax, consider seeking professional help from a qualified accountant. At Chesterton House Accounting Services we can guide you through the process, ensure you're claiming all the deductions and allowances you're entitled to, and help you meet all your tax filing deadlines.


Get in touch today for a free initial conversation to learn more about how we can help ease the pressures of running your business.


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