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sole-trader tax
Jimeji
Posts: 62 Forumite
in Cutting tax
Began working in a freelance position in October and have been putting aside estimated tax payments in to a savings account, ready to pay the tax bill.
Submitted tax return, using all income plus expenses and have a bill that needs to be paid by January 2026, with a second installment due later in 2026.
I've researched as much as I can without using an accountant, which I'll avoid using if possible.
Does the above procedure all sound correct thus far?
Submitted tax return, using all income plus expenses and have a bill that needs to be paid by January 2026, with a second installment due later in 2026.
I've researched as much as I can without using an accountant, which I'll avoid using if possible.
Does the above procedure all sound correct thus far?
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Comments
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Nearly.Jimeji said:Began working in a freelance position in October and have been putting aside estimated tax payments in to a savings account, ready to pay the tax bill.
Submitted tax return, using all income plus expenses and have a bill that needs to be paid by January 2026, with a second installment due later in 2026.
I've researched as much as I can without using an accountant, which I'll avoid using if possible.
Does the above procedure all sound correct thus far?
I think you will find you have the following payments due.
31 Jan 2026 - Balancing Payment for 2024-25
31 Jan 2026 - 1st payment on account for 2025-26
31 July 2026 - 2nd payment on account for 2025-26
Depending on what your next return shows the latter two amounts may be reduced. Unless you file an amendment to your 2024-25 return they wouldn't be increased.1 -
Yes, exactly that payment plan. Great, all sounds on track. Thanks for your response.
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I am sure that you have but did you include whatever income you may have received from any other source from April 2024 until you commenced freelancing?Jimeji said:Yes, exactly that payment plan. Great, all sounds on track. Thanks for your response.0 -
Hi, well done so far! To double check your understanding and to help keep on top of your taxes going forward, you may be interested in our self-employment guide - now fully updated: https://www.litrg.org.uk/announcements/our-updated-self-employment-tax-guide-available-now“Official Company Representative
I am an official representative of LITRG (Low Incomes Tax Reform Group) part of the Chartered Institute of Taxation who are an educational charity. We are not part of MSE or HMRC. MSE has given permission for me to post on the Forum but this does NOT imply any form of approval of my organisation or its products by MSE. We can’t give individual advice, but if you require further help, we recommend that you contact a tax adviser, HMRC or one of the tax charities where relevant. You can find more information about where to get help with tax here. If you believe I am posting inappropriately please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"-1 -
I'm pretty sure I did, it was a while ago since it was submitted![Deleted User] said:
I am sure that you have but did you include whatever income you may have received from any other source from April 2024 until you commenced freelancing?Jimeji said:Yes, exactly that payment plan. Great, all sounds on track. Thanks for your response.
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One more question - I'm keeping all reciepts, payslips etc safely filed away. When and who will need to see these?0
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Hopefully nobody ever. But, if HMRC do decide to look more closely at your submission, you would need to have access to them, or provide them if necessary.Jimeji said:One more question - I'm keeping all reciepts, payslips etc safely filed away. When and who will need to see these?1 -
You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. HM Revenue and Customs (HMRC) may check your records to make sure you’re paying the right amount of tax.
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