Here’s what to do before 5 April

As the end of the tax year approaches, freelancers and sole traders often leave things until the last minute. That can be costly. A few simple checks before 5 April can reduce your tax bill, improve cash flow, and save a lot of stress.

Here are some practical tips you can act on now.

Check your expenses are complete

Go through your bank statements and receipts. Have you included everything?
Commonly missed items include:

• Home office costs
• Phone and internet use
• Professional subscriptions
• Training related to your trade
  

Even small amounts add up. Accurate records also reduce the chance of mistakes and an HMRC tax investigation.

Use your personal allowance fully

Every individual has a tax-free personal allowance. If your income is just under a band, consider invoicing after 5 April to keep within a lower rate. Timing matters when it comes to income, allowances, and tax planning for businesses.

Consider capital allowances

If you need equipment or tools, buying them before 5 April may allow you to claim annual investment allowance (AIA) this year. That can reduce your taxable profits. Only spend if the purchase is genuinely needed.

Pay into a pension

Contributions to a registered pension scheme attract tax relief. Making a payment before 5 April could lower your taxable income and help build long-term savings.

Review your payments on account

If your income has fallen compared to last year, you may be able to reduce your payments on account. This can ease cash flow pressure. Speak to a specialist tax advisor before you make changes.

Plan for National Insurance

Class 2 and Class 4 National Insurance contributions are due alongside your tax bill. Make sure you understand what’s payable. Keeping ahead avoids surprises in January.

Get your records in order

The earlier you prepare, the easier it is. Cloud accounting software can help, but even a well-kept spreadsheet is better than a box of receipts. For more complex cases, professional HMRC enquiry support may be vital.

FAQs

When is the tax year end in the UK?
The tax year ends on 5 April each year. Anything earned or spent before this date falls into the current tax year.

Can I still reduce my tax bill after 5 April?
Some reliefs, such as pension contributions, need to be made before 5 April. Once the year closes, your options are limited.

Do I need to submit my tax return by 5 April?
No. The online self-assessment deadline is 31 January following the tax year. But planning should be done before 5 April.

Is it worth hiring a tax advisor if I’m a freelancer?
Yes. A specialist can help with allowances and reliefs you might miss. This often saves more than the cost of advice. Practical freelancer tax advice can be the difference between overpaying and keeping more of your income.

Can Eaves & Co help with other tax issues?
Absolutely. From self-employment through to inheritance tax planning, our team provides tailored support to protect your income and assets.