UK Tax Guide
Tax guidance for FlexDuty experts based in the United Kingdom.
Overview
As a UK-based contractor:
- You’re self-employed for tax purposes
- Register with HMRC
- File Self Assessment annually
- Pay Income Tax and National Insurance
Registration
Register as Self-Employed
- Register with HMRC by October 5 after your first tax year
- Get your Unique Taxpayer Reference (UTR)
- Set up Government Gateway account
Income Tax Rates (2024-25)
| Band | Taxable Income | Rate |
|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
National Insurance
Class 2
- £3.45 per week (if profits above £12,570)
- Paid annually with Self Assessment
Class 4
| Profits | Rate |
|---|
| £12,570 - £50,270 | 9% |
| Above £50,270 | 2% |
Self Assessment
Key Dates
| Date | Event |
|---|
| 5 April | Tax year ends |
| 31 October | Paper return deadline |
| 31 January | Online return deadline |
| 31 January | Payment deadline |
Payments on Account
If you owe more than £1,000:
- Two advance payments required
- 31 January (for current year)
- 31 July (balancing payment)
Allowable Expenses
Deduct business expenses:
- Equipment and software
- Professional subscriptions
- Training courses
- Home office costs
- Travel for business
- Accountant fees
VAT Considerations
Registration Threshold
- Required if turnover exceeds £85,000
- Voluntary registration available below threshold
Flat Rate Scheme
May be beneficial if expenses are low (check rates for IT consultants).
Record Keeping
Keep records for 5 years:
- All income records
- Expense receipts
- Bank statements
- Invoices issued
Making Tax Digital
From April 2026, self-employed individuals with income over £50,000 must use MTD-compatible software.
Getting Help
- HMRC guidance: gov.uk/self-employed
- Consider an accountant
- Use accounting software (FreeAgent, Xero)
Disclaimer
This is general guidance. Consult an accountant or HMRC for advice specific to your situation.
