Contractor Tax Returns

If you are a freelancer or a contractor and have received income during the tax year upon which tax is due, then you will have to file a self assessment tax return each year. You will need to register for self assessment and you will then receive your Unique Taxpayer Reference number (UTR) which you’ll need to keep safe for future tax returns.

Tax Return Quote

Contractor Tax Returns

I'm a self employed contractor so how do I pay my taxes?

Self-employed people use HMRC's Self Assessment tax return system to declare their income and pay the tax they owe. You have to resister for Self Assessment, and file a yearly tax return. Contracting work often comes with some unavoidable costs attached. Many of these count as "allowable expenses" in your Self Assessment returns. This means they can be used to bring down the amount of income you're paying tax on.

Tax Return Quote

Freelance Tax Returns

How does the self assessment system work?

Once you're registered for Self Assessment, you'll need to start keeping track of your business records and the money you've got coming in and going out. The more organised you are about this, the better. You've got a strict deadline of the 31st of January to file your yearly tax return, and to pay what you owe. That's assuming you're filing online. If you do your returns on paper, they need to be filed earlier, by the 31st of October.

One thing that catches a lot of people out when they're new to Self Assessment is "payments on account". Basically, in addition to paying what you already owe, the taxman will also take a guess as to what you're going to owe next time. You have to pay half of this by the 31st of January, then the rest on the following 31st of July. If you end up paying too much or too little because of your payments on account, HMRC will settle up.

Tax Return Quote

Contractor Tax Returns

Is there a simpler way of calculating my expenses?

Not everyone wants the hassle of keeping receipts for every last expense throughout the year. You might also have trouble calculating exactly what proportion of your travel or phone bills were used for business.

To keep everything streamlined and easy, many contractors choose to use HMRC's Simplified Expenses instead. These are flat rates of tax relief you can claim for common types of work expenses. You can only do this if you're a Sole Trader or in a partnership with no companies as partners. You might not end up getting all the tax relief you could, but it does lighten the paperwork load involved. 

Tax Return Quote

Tax Returns For Freelancers

Can I get help with my self assessment tax returns?

Yes! RIFT are the UK's leading tax experts, and we're here to help. We can quickly get you registered for Self Assessment tax returns and track down all your allowable expenses. Our specialised Self Assessment service can even take care of your tax returns entirely! We'll save you money and keep you on the right side of HMRC. Get in touch to see what we can do for you.

Tax Return Quote

Customer Reviews

Don't just take our word for it, here's what our customers say

We invite customers to leave feedback on their experience with RIFT on Reviews.co.uk. This is an independent site that anyone can access to find out what previous customers have said about us.

Read our reviews

Need more help?

calc

Wondering if you can claim a tax refund or need to submit a tax return? Use our online tools to find out if you're owed money by HMRC.

Do I Qualify?

Call

Speak to us 6 days a week.
Mon-Thurs 08:30 - 20:30
Fri 08:30 - 18:00 and Sat 09:00 - 13:00.
RIFT Refunds, RIFT House, 200 Eureka Park,Upper Pemberton, Ashford, Kent, TN25 4AZ

Call us on 01233 628648

chat

Want to chat to a member of our team?
Why not use our live chat to speak to an
online advisor now?

Open live chat