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We've scoured the web to get you the most up-to-date advice which includes the most useful tools on offer from the officials themselves.

Effective tax planning is essential if you are to minimise your tax bills. Simple tax planning can significantly reduce your tax liabilities.

The self-assessment tax return is an unavoidable burden if you are liable for self-employed tax or have complicated income tax affairs.

Corporation tax is charged on a company's profits. If you trade as a limited company, ensure that paying this tax is as painless as possible.

National Insurance Contributions (NICs) are payable whether you are self-employed or employed by your own company, although different rates apply.

As well as your legal obligations, you’ll want to ensure that payroll is painless and that you use any opportunities to improve your tax-efficiency.

VAT

Effective VAT planning aims to ensure that VAT is relatively painless, and that you are reclaiming as much as possible of the VAT you pay.

Capital gains are made when you sell something for more money than you paid for it. As a result, you can be subject to tax. Take professional advice.

Business property taxes apply to businesses with commercial premises.There are two commercial property taxes: business rates and stamp duty land tax.

If you have tax problems or face a tax investigation, it pays to seek professional advice and you must act rather than just hoping for the best.

One year on: counting the cost of COVID on small firms

30 March 2021

A year after the first lockdown, new research shows how the pandemic has left many UK freelancers and small business owners struggling.

The latest data from the Office for National Statistics (ONS) shows that the total number of self-employed people in the UK has fallen by 660,000 compared to the same time last year - equivalent to more than one in eight self-employed people leaving the sector.

Meanwhile, research by freelancer body IPSE has found that the pandemic has had a "devastating impact" on those that remain - particularly the one million still excluded from government support.

IPSE's findings show that:

  • More than one in five self-employed people have had to take on credit card debt to get by;
  • One in seven have had to use their overdrafts;
  • More than a quarter have had to use up all their savings to survive financially.

IPSE's study also shows that there has been a staggering 341% increase in the number of self-employed people claiming Universal Credit during the last year: from 47,000 to 206,200.

The ONS data shows the scale of the decline in both male and female freelancers: a fall of 462,000 in the number of male freelancers compared to 198,000 female freelancers. IPSE research also shows that there has been a worrying drop of 8% in the number of disabled self-employed people - a group that had seen continuous growth over the past decade.

"The pandemic has had a disproportionately damaging impact on the self-employed sector in the last year, with one in eight being driven out - into employment or out of work altogether - and many more struggling with severe financial loss," said IPSE ceo Derek Cribb.

"One of the crucial causes is the complexity of self-employment in the UK: the excessive number of ways people can be freelance - from limited companies to PAYE freelancers. This systemic complexity then led to terrible individual consequences as the government struggled - and in many cases failed - to distribute support to the various and very different self-employed groups."

A survey of more than 2,800 small business owners by payments provider SumUp has found that one in five small business owners (22%) reported a sharp drop in sales (over a third) during the pandemic and 73% say they have not received enough government financial support to cover their losses. The findings also show that while 66% of small business owners applied for financial support from the government, 11% of these got no help at all.

Even so, UK small business owners have demonstrated their resilience, with one in 20 saying they have "completely" pivoted their business in the past 12 months. Overall, 51% of small firms have changed their operations in some way over the past year, including introducing remote payment options, gift cards and online stores.

Or Perlman, UK country lead at SumUp, said: "Many business owners are experiencing an incredibly difficult and frustrating time … Yet through adapting to these difficult circumstances, which have ranged anywhere from moving the business premises to adopting an ecommerce model, introducing new safety measures, to completely changing their business - small businesses are continuing to endure the pandemic with these innovative changes helping to keep things ticking over, until they can fully open their doors again."

Written by Rachel Miller.

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