Self-employed tax basics
A plain-English starting point. This is general information, not personal tax advice.
The essentials
- Register as self-employed with HMRC when you start trading.
- Keep records of all income and allowable expenses.
- Set money aside for tax as you earn — a live estimate helps you avoid a year-end shock.
- File and pay through Self Assessment (and quarterly updates under Making Tax Digital where it applies to you).
Allowable expenses
Costs "wholly and exclusively" for your trade — tools, materials, mileage, a share of working-from-home costs, and more depending on your work.
How Vecti helps
Vecti records income, expenses and mileage as you go and shows a live tax estimate using current rates and allowances — for guidance, not a final HMRC figure. For your year-end declaration, connect an accountant.