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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 in six freelancers have no savings

11 August 2020

A new study has found that 17% of self-employed workers have no financial buffer and less than one in ten have insurance to protect their income.

The research, conducted by the economics consultancy Cebr for insurer The Exeter, reveals that almost one-third of freelancers have very little money to fall back on in the event of a financial crisis.

The findings show that:

  • 17% of self-employed workers in the UK have no personal savings at all to fall back on;
  • A further 14% of self-employed workers have less than £2,000 in savings.

The latest Government figures show that over half of the five million self-employed workers in the UK have claimed for a grant through the Self-Employment Income Support Scheme (SEISS), with 2.7 million claims granted, worth a total of £7.8 billion.

Less than one in ten (9%) of self-employed workers protect their income through insurance. In fact, 65% of the UK adult population do not have any form of protection insurance in place.

The findings also show that a third (35%) of self-employed workers do not save anything at all in a typical month. Nearly four in ten (39%) of those aged 35-44 said they saved nothing per month, the highest of any age group, followed by 38% of respondents aged 45-54 and 33% of over-55s.

Despite the low level of saving among the self-employed, 52% of respondents said they would rely on their savings if they suffered a loss of income. However, 43% of all those polled said they save less than £50 per month.

Andy Chapman, ceo of The Exeter, said: "Self-employed and gig economy workers are a large part of the UK's labour market, representing 15% of the workforce. However, despite the benefits which being self-employed can bring, this type of labour can pose risks to an individual's financial situation if they are suddenly unable to work. Indeed, during the peak of the COVID-19 outbreak we saw many of these individuals face an income shortfall almost overnight as the UK went into lockdown.

"Half of self-employed workers in our survey said they would use their personal savings if they experienced a loss of income, despite a concerningly low level of savings among this group. However, what is perhaps more worrying is the significant level of underinsurance among this group, with just 9% of those surveyed saying they had income protection."

Written by Rachel Miller.

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