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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.

Freelancers struggle to get on the property ladder

2 March 2021

It is "more difficult than ever" for freelancers to buy a home, as new research shows that 59% feel they're being penalised for being self-employed when trying to get a mortgage.

A survey of UK freelancers by the Association of Independent Professionals and the Self-Employed (IPSE) and CMME has found that the pandemic is making it even more difficult for freelancers to get on the housing ladder.

The findings show that financial uncertainty is affecting freelancers who are planning to buy a home in the next five years. In this group:

  • 63% are concerned about the state of the UK housing market;
  • 75% are worried they don't have the job security to get a mortgage;
  • 60% are concerned they would not be able to afford a mortgage;
  • And, of these, 77% are worried getting a mortgage will be more difficult because of their self-employed status.

However, many freelancers are not even contemplating buying their own home. Of those who are not homeowners and are not planning to buy, one in four (25%) said the main reason was worries about the pandemic. Another one in five (20%) said they had used up all their savings during the pandemic.

Of those freelancers who have already got a mortgage, 25% said it had been somewhat or very difficult - and of these, almost all (96%) said the main reason was that they had had to provide more paperwork because they were self-employed. In fact, 70% said that some lenders simply would not consider them because of their self-employed status.

"One in four self-employed professionals have experienced difficulty getting a mortgage, as traditional lenders have struggled to assess their true borrowing power, often resulting in them lending less, offering a poor deal or simply saying no," said Mike Coshott, ceo at CMME.

Chloé Jepps, IPSE head of research, said: "Getting a mortgage has always been more of a challenge for freelancers, but in the pandemic - the financial impact of which has disproportionately hit the self-employed - it is more difficult than ever.

"In the context of the pandemic, a significant proportion of freelancers are not considering buying a home at all - either because of the sheer financial uncertainty, or because they have lost so much of their savings.

"With extreme financial anxiety across the self-employed sector, as well as widespread reports of lenders unfairly adding to the obstacles facing freelancers who want to get on the housing market, it's clear the sector needs more support from government. Without intervention, there is a risk many thousands of freelancers will have to put their house-buying plans on ice for years to come - or even give up on the dream of home-owning altogether."

Although there is uncertainty about how to get a mortgage (49% of those planning to buy in the next five years said they did not understand the steps to get a mortgage), the findings also show that many freelancers are turning to mortgage brokers. Nearly two-thirds (65%) of those who planned to use a broker to find a mortgage believed they were helpful for getting self-employed people better rates, while two-fifths (42%) said it was easier than going directly to a lender.

Written by Rachel Miller.

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