sole-trader tax

Jimeji

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?

Dazed_and_C0nfused

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?

Nearly.

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.

Jimeji

Yes, exactly that payment plan. Great, all sounds on track. Thanks for your response.

Nomunnofun1

Jimeji said:

Yes, exactly that payment plan. Great, all sounds on track. Thanks for your response.

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?

LITRG

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

Jimeji

Nomunnofun1 said:

Jimeji said:

Yes, exactly that payment plan. Great, all sounds on track. Thanks for your response.

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?

I'm pretty sure I did, it was a while ago since it was submitted!

Jimeji

One more question - I'm keeping all reciepts, payslips etc safely filed away. When and who will need to see these?

Nomunnofun1

Jimeji said:

One more question - I'm keeping all reciepts, payslips etc safely filed away. When and who will need to see these?

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. 

sheramber

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.

https://www.gov.uk/self-employed-records/how-long-to-keep-your-records#:~:text=You must keep your records,the right amount of tax.