Keep on top of tax bills if you run your own business

IF YOU work for yourself, you need to be on top of the tax you owe and when it is due.

As a sole trader, you need to register with Revenue & Customs by October 5 after the end of the tax year you turned freelance.

If you earn more than £85,000, you’ll also have to register for VAT.

You’ll need to file your tax return for the previous tax year by October 31 by post or January 31 the following year if you do it online. The tax is also due on January 31. If you earn between £12,570 and £50,270 you will pay a basic rate of 20 per cent tax; for earnings of £50,271 to £150,000 it’s 40 per cent; and anything above £150,000 attracts a 45 per cent additional rate of tax.

You can offset some of your expenses – including travel costs, office supplies and insurance.

You will also need to pay National Insurance and corporation tax if you have a limited company.