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By At TT Accountancy, we specialize in helping London’s self-employed professionals stay tax-compliant while maximizing their earnings. Whether you’re a freelancer, contractor, or sole trader, this comprehensive checklist ensures you meet all HMRC requirements while keeping more of your hard-earned money.
Why This Checklist Matters
✅ Avoid average £1,600 in late-filing penalties
✅ Claim £3,000+ in typical overlooked expenses
✅ Prevent stressful HMRC investigations
✅ Prepare properly for Making Tax Digital (MTD)
*”Last year, our self-employed clients saved an average of £4,200 through proper tax planning.”*
— Sarah Johnson, Self-Employment Specialist
1. Registration Essentials
Must-Do Tasks
✔ Register as self-employed with HMRC (by 5 October in your second tax year)
✔ Enroll for Self Assessment (Unique Taxpayer Reference required)
✔ Consider VAT registration if turnover exceeds £85,000/year
✔ Check if you need to register for Construction Industry Scheme (CIS)
📌 London Tip: Many co-working spaces qualify for business rate relief – don’t overpay!
2. Record-Keeping Requirements
What to Track
- All income (bank statements, invoices, cash receipts)
- Business expenses (receipts required for claims)
- Mileage (45p/mile for first 10,000 miles)
- Home office costs (simplified £6/week allowance available)
💡 Recommended Tools:
- Xero for accounting
- FreeAgent for freelancers
- QuickBooks Self-Employed for side hustles
3. Key Tax Deadlines
| Task | Deadline | Penalty |
|---|---|---|
| Self Assessment registration | 5 Oct Year 2 | £100 |
| Paper tax return | 31 Oct | £100 + interest |
| Online tax return | 31 Jan | £100 + interest |
| First payment on account | 31 Jan | 5% interest |
| Second payment on account | 31 Jul | 5% interest |
4. Expense Claims You Might Miss
Often Overlooked Deductions
- Use of home (£6-£26/week simplified rate)
- Mobile phone (business portion)
- Professional subscriptions (relevant to your trade)
- Bank charges on business accounts
- Training courses to improve skills
🚗 Example: A London Uber driver could claim:
- 45p/mile for business miles
- Phone mount and charger
- Private hire license fees
- Car cleaning (business proportion)
5. Making Tax Digital (MTD) Preparation
What’s Changing
- April 2026: MTD for Income Tax starts (turnover >£50k)
- April 2027: Extends to turnover >£30k
Get Ready Now
- Switch to MTD-compatible software (we recommend Xero)
- Start quarterly digital updates practice
- Digitise all receipts (use Dext or Receipt Bank)
6. Tax-Saving Strategies
For Higher Earners (£50k+)
- Pension contributions (reduce taxable income)
- Spouse income splitting (if they help in the business)
- Annual Investment Allowance (up to £1m equipment claims)
For Side Hustlers
- £1,000 trading allowance (no tax on first £1k profit)
- Simplified expenses for low-cost businesses
7. Special London Considerations
🏙 Higher Costs Mean Bigger Claims:
- Transport (Oyster card business portion)
- Client entertainment (50% deductible)
- Co-working spaces (100% deductible)
💷 London-Specific Reliefs:
- Creative Industry Tax Reliefs (for artists, designers)
- Research & Development (R&D) Credits (for innovative freelancers)
8. Common Mistakes to Avoid
❌ Mixing personal/business finances
❌ Missing payment on account deadlines
❌ Forgetting to claim all allowable expenses
❌ Underestimating tax liability
❌ Ignoring MTD requirements
Why Use TT Accountancy?
Our Self-Employed Tax Package (£50/month) includes:
✔ Annual Self Assessment completion
✔ Quarterly tax estimates
✔ Expense claim optimisation
✔ MTD software setup
✔ Dedicated accountant
Bonus: Free initial consultation to review your specific situation.
Need Help With Your Self Assessment?
📞 Call 02039741266
📧 thomas@ttaccountancy.com
🌐 Book Online Consultation
*”TT Accountancy saved me £3,700 in my first year as a freelance graphic designer – their expense advice was invaluable!”*
— Michael T., Shoreditch
