If you are self-employed, you need to pay tax on your taxable profit after take off various running cost from the income generated. Your business will have various running costs and you can deduct some of these costs to work out your taxable profit as long as they are allowable expenses.

These include:

• Office cost – for example stationery or phone bills
• Travel expenses – for example fuel, parking, train or bus fares
• Clothing expenses – for example uniforms
• Staff Cost – for example salaries or subcontractor costs
• Things to buy to sell – for example stock or raw materials
• Finance cost – for example insurance or bank charges
• Expenses on business premises – for example heating, lighting, business rates
• Marketing and Advertisement – for example website costs
• Training and subscription expenses – related to your business, for example refresher courses

So you need to do Self-assessment Tax return in order to pay the tax, National Insurance contribution and Pension contribution.

We are happy to help you in this regard.