Top 10 Freelancer Tax Mistakes in the UK (2025 Edition)
Top 10 Freelancer Tax Mistakes in the UK (2025 Edition)
If you’re freelancing in the UK, tax can feel overwhelming.
Here are the most common mistakes freelancers make — and how you can avoid them.
1. Missing the Registration Deadline
If you started freelancing in the 2024/25 tax year, you must register for Self-Assessment by 5 October 2025. Miss it, and you risk penalties.
2. Forgetting to Track Small Expenses
Coffee on client meetings, domain renewals, mileage — these add up.
Not tracking them means paying more tax than necessary.
3. Ignoring VAT Threshold
As of 2025, the VAT threshold is £90,000 turnover. Forgetting to register = fines.
4. Not Backing Up Records
Receipts fade. Keep digital backups in cloud storage.
5. Mixing Personal & Business Accounts
Use a separate bank account. HMRC will thank you later.
6. Missing Payment on Account
If your bill is over £1,000, HMRC may expect advance payments. Plan for it.
7. Guessing Allowable Expenses
Claim only what’s “wholly and exclusively” for business. Grey areas? Keep a note.
8. Using Outdated Templates
Invoices need legal info. Use updated templates (like the ones in our Freelancer Tax Survival Kit 2025).
9. Leaving Filing to the Last Minute
January is chaos. File early to spot issues in time.
10. Not Getting Professional Help When Needed
Even if you DIY, a quick check with an accountant can save thousands.
✅ Want all of this made simple?
Grab the UK Freelancer Tax Survival Kit 2025 — complete with checklists, trackers, and templates.