Accountants For Self employed

The Essential Guide for Self-Employed Accounting in the UK – 2024 Edition

Our vision and our achievements:

  • Over one hundred ‘5 star’ “client satisfaction reviews” Save time, stay organised and Transform into a profitable business
  • Business excellence award winners for 2023 for “Most Client-Focused Business Tax & Accounting firm” knowing you’re in safe hands
  • 10 years of experience with HMRC and our client service guarantee, maximising your tax allowances

We go one step further for our clients.

GM professional are Accountants for self employed individuals. If you would like to operate as a freelancer or are self-employed, then this is by far the quickest and easiest way to start a business.

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Introduction:

At GM Professional Accountants, we’re more than just accountants; we’re your partners in turning your freelance or self-employment venture into a profitable and compliant business. With over a decade of experience in HMRC dealings and a track record of client satisfaction, our expertise is unmatched.

Why Choose Self-Employment?

Self-employment offers control, flexibility, and simpler disclosure requirements compared to a limited company. As a self-employed individual, you’re entitled to all profits and have fewer restrictions on fund withdrawals.

Legal Considerations Before Setting Up:

Before diving into self-employment, understand the legalities, such as local permits, business rates, and planning permissions. Each local authority has its own rules, so consult your local planning department for tailored advice.

Self-Employment Registration Process:

To avoid penalties, register as self-employed by 5th October in your business’s second tax year. Use HMRC’s CWF1 form to inform about your business and register for self-assessment. GM Professional Accountants can streamline this process, ensuring you get your UTR number without hassle.

Detailed Self-Assessment Registration Procedure:

  1. Gather your National Insurance number and personal details.
  2. Choose your registration method: online, by phone, or post.
  3. Provide HMRC with your business details, including the start date.
  4. Receive your Unique Taxpayer Reference (UTR) number from HMRC.

Filing Dates and Tax Payable for 2024:

  • Deadline for online submissions: 31st January 2025.
  • Tax payment due: 31st January 2025 for the 2023/2024 tax year.
  • Example of tax payable: For an income of £30,000, the estimated tax (excluding National Insurance) is approximately £3,500.

Allowable Expenses:

Commonly allowable expenses include office costs, travel expenses, and legal fees. For a comprehensive list, visit the HMRC website.

Late Filing Penalties:

Penalties start at £100 for missing the tax return deadline, increasing over time. Consistent late filing can lead to significant financial penalties.

Maintaining Financial Records:

Good record-keeping is crucial. Separate your bank statements, purchases, and expenses. This clarity aids in accurate tax returns and financial health assessment.

For Self-Employed Filing:

Annual tax returns are mandatory, with quarterly submissions under the upcoming Digital Tax Scheme. Ensure your accounts are organized for efficiency.

Conclusion:

Embrace the freedom of self-employment with GM Professional Accountants as your trusted advisor. Our award-winning service and extensive experience with HMRC make us the ideal partner for your business journey.

Revised Case Study 1: The Freelance Graphic Designer (Emily)

Background: Emily’s freelance graphic design business earned £45,000 in the 2023-2024 tax year.

Financial Breakdown:

  • Total Income: £45,000
  • Allowable Expenses: £5,000
  • Taxable Income: £40,000

Tax and NI Calculation:

  • Tax Payable: £5,486 (as previously calculated)
  • Class 2 NI: £3.15 per week for profits over £6,725 annually, totaling approximately £163.80.
  • Class 4 NI: 9% on profits between £11,908 and £50,270, so 9% of (£40,000 – £11,908) = £2,528.28.

Total Tax and NI Contribution: £5,486 (Income Tax) + £163.80 (Class 2 NI) + £2,528.28 (Class 4 NI) = £8,178.08


Revised Case Study 2: The Independent Contractor (John)

Background: John, an independent contractor, had an income of £65,000.

Financial Breakdown:

  • Total Income: £65,000
  • Allowable Expenses: £20,000
  • Taxable Income: £45,000

Tax and NI Calculation:

  • Tax Payable: £9,432 (as previously calculated)
  • Class 2 NI: £3.15 per week, totaling approximately £163.80.
  • Class 4 NI: 9% on profits between £11,908 and £50,270 (9% of £38,362) + 2% on profits over £50,270 (2% of £14,730) = £3,452.58 + £294.60.

Total Tax and NI Contribution: £9,432 (Income Tax) + £163.80 (Class 2 NI) + £3,747.18 (Class 4 NI) = £13,343.98

Ready to start or optimize your self-employment journey? Contact GM Professional Accountants for expert assistance.


 

 

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allowable expenses uk