📌 Introduction If you’re self-employed in the UK, one of the most common questions is: 👉 “How much tax will I actually pay?” The answer depends on your income, but the good news is: 👉 You don’t pay tax on everything you earn. In this guide, we’ll explain exactly how tax works , with simple examples so you can understand what to expect. 💼 Step 1: Your Profit (NOT your income) You are taxed on: 👉 Profit = Income – Expenses Example: Income: £50,000 Expenses: £10,000 👉 Tax

If you’re starting a business in the UK, one of the most important decisions you’ll make is: 👉 Should you be Self-Employed or set up a Limited Company? Both options have advantages and disadvantages, and the right choice depends on your income, type of work, and long-term goals. In this guide, we explain the key differences clearly and simply  so you can make the best decision. 📌 What does Self-Employed mean? If you are self-employed: You work for yourself There is no legal

If you have a business in the UK, one of the most important questions is: 👉 “Do I need to register for VAT?” The answer depends on your income and the type of activity you carry out. In this guide, we explain clearly and simply when it is mandatory, when it is optional, and what you need to do. 📌 What is VAT? VAT (Value Added Tax) is a tax applied to most goods and services in the UK. 👉 If you are VAT registered: You add VAT to your invoices (usually 20%) You collect VAT f

Making Tax Digital (MTD) is one of the biggest changes to the UK tax system in recent years. If you're self-employed or a landlord, this will directly affect how you report your income and pay tax. From April 2026, many individuals will be required to move from traditional annual tax returns to a fully digital system with quarterly reporting . In this guide, we’ll break it down in simple terms — what MTD is, who it affects, and what you need to do to stay compliant. ✅ What is