How to Stay HMRC-Compliant as a Freelancer

When you’re freelancing, you’re not just the expert in your craft you’re also the admin team, the marketing department, and yes, the finance manager. Staying on the right side of HMRC might not be the most exciting part of your business, but it’s absolutely essential.

Here’s how to stay compliant without losing sleep over spreadsheets.

1. Register with HMRC

If you’re earning money from freelance work, you need to register as self-employed. This lets HMRC know you’ll be filing a Self Assessment tax return.  

Tip: You can register online through the HMRC website. Do it early to avoid delays.

2. Keep Accurate Records

HMRC expects you to keep detailed records of your income and expenses. That means:

- Invoices and receipts

- Bank statements

- Mileage logs (if applicable)

- Any business-related purchases

Tip: Use bookkeeping software or a simple spreadsheet to stay organised. Don’t leave it until the end of the tax year.

3. Understand Allowable Expenses

Not everything you buy for your business is tax-deductible. HMRC has clear rules about what counts as an allowable expense like office supplies, travel costs, and software subscriptions.  

Tip: If you’re unsure, ask a bookkeeper or check HMRC’s guidance to avoid claiming incorrectly.

4. File Your Tax Return on Time

The deadline for online Self Assessment is usually 31 January following the end of the tax year. Late submissions can lead to penalties even if you owe nothing.  

Tip: Set reminders and aim to file early. You’ll avoid the January rush and get peace of mind.

5. Pay What You Owe

Once your return is filed, HMRC will tell you how much tax and National Insurance you owe. Make sure you pay by the deadline to avoid interest or fines.  

Tip: Set aside money throughout the year so you’re not caught off guard.

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Need Help Staying Compliant?

I help freelancers across Portsmouth and the UK stay organised, confident, and HMRC ready. From record-keeping to deadline reminders, I’ll make sure your finances are sorted so you can focus on your work.