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Self-employed taxation

Expert commentary and practical guidance from ICAEW related to the taxation of those that are self-employed within the UK business tax regime, including cash basis.

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Exclusive

Changes to the cash basis for traders

Richard Jones considers the changes provided for by Finance Bill 2023-24 to the cash basis for trades subject to income tax.
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TAXguide 02/22: Basis Period Reform

This TAXguide provides details of the reform to the taxation of unincorporated businesses introduced through FA 2022 to take effect from April 2024. The TAXguide has also been updated for more recent changes and is up to date as of 10 October 2023.
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Features and articles

ICAEW makes its case for Budget tax measures
  • Article
  • 19 Sep 2024
ICAEW has set out its recommendations for the business tax roadmap to be published at the Budget and has encouraged the government to carry-out a wider review of the tax system. ICAEW's Tax Faculty goes through the details.
Cash basis changes bring many farms into scope
  • Article
  • 12 Sep 2024
The switch to a cash basis in 2024/5 will have a massive impact on taxable profits for many in the farming sector.
Tax news in brief 31 July 2024
  • Article
  • 30 Jul 2024
Highlights from the broader tax news for the week ending 31 July 2024, including: regulations have been made which exempt certain payments made to postmasters from tax; HMRC has updated its MTD guidance; and further information is now available from HMRC on the 2022/23 class 2 NIC issue affecting some taxpayers.
Voluntary class 2 NIC repaid in error
  • Article
  • 25 Jun 2024
HMRC has provided an update on an issue affecting voluntary class 2 national insurance contributions (NIC) for 2022/23.
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Practical guidance

TAXguide 02/22: Basis Period Reform
  • Technical release
  • 05 Apr 2022
This TAXguide provides details of the reform to the taxation of unincorporated businesses introduced through FA 2022 to take effect from April 2024. The TAXguide has also been updated for more recent changes and is up to date as of 10 October 2023.
Exclusive TAXguide 14/21 Income tax loss carry back
  • Technical release
  • 06 Aug 2021
Finance Act 2021 introduces a new loss relief allowing trading losses incurred in 2020/21 and 2021/22 to be carried back for relief against trading profits in the preceding three tax years. In this TAXguide Rebecca Benneyworth explains the measure in detail and examines some of the complexities that arise when considering the practical implications of the loss carry back.

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive Property rental businesses
  • eBook chapter
  • 2024
  • Annette Morley, Nicola Moore
  • A to Z of Business Tax Deductions
A full chapter covering the tax principles and framework for deductions by unincorporated property businesses.
Exclusive Cash basis for unincorporated businesses
  • eBook chapter
  • 2024
  • Annette Morley, Nicola Moore
  • A to Z of Business Tax Deductions
A full chapter covering the cash basis system of accounting, including eligibility, rules for specific trades and professions and the way cash basis works. 
Exclusive Self-employment
  • eBook chapter
  • 2024
  • The TACS Partnership
  • Bloomsbury Professional Tax Guide
A chapter on the UK tax treatment of self-employment, containing worked examples throughout.
Exclusive Business profits
  • eBook chapter
  • 2024
  • Lucy Webb
  • Bloomsburys Tax Rates and Tables
Tax rates and tables for business profits, updated to reflect measures passed in the Finance (No 2) Act 2024. The chapter includes sections on MTD, cash basis, fixed rate deductions, averaging profits for farmers and artists, car hire costs, residential property lettings, time limits for claims and elections, lease premiums and SEISS.
Exclusive Class 2 National Insurance contributions
  • eBook chapter
  • 2024
  • Sarah Bradford
A chapter on Class 2 National Insurance contributions — flat-rate contributions payable by the self-employed for 2023/24 and earlier tax years. Covers topics including exceptions, voluntary payment, special rates, the annual maximum, and planning points.
Exclusive Class 4 National Insurance contributions
  • eBook chapter
  • 2024
  • Sarah Bradford
A chapter on Class 4 National Insurance contributions, which are payable by the self-employed by reference to their profits. Covers topics including exceptions, computation, the annual maximum, special contributions, and planning points.
Exclusive Self-employed workers and NICs
  • eBook chapter
  • 2024
  • Ben Hancock, Sarah Bradford, Tim Kelsey, Alastair Kendrick
  • Payroll Management
A short section summarising the NICs liability of self-employed workers. Includes illustrative examples.
Exclusive Self-employment
  • eBook chapter
  • 2024
  • John Hiddleston
  • Income Tax
A full chapter providing a practical overview of the taxation of self-employment income in the UK, including the temporary Covid-19 Self-employment Income Support Scheme (SEISS).
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eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive Employment and self-employment
  • eBook chapter
  • 2024
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
This chapter outlines UK employment taxation as it functions in the UK, with particular relevance to small businesses. It includes sections on the definition of self-employment, agency workers, non-executive directors (NEDs), national insurance contributions and the taxation of intermediaries.
Exclusive Working for yourself
  • eBook chapter
  • 2023
  • Telegraph Media Group
  • Kogan Page
  • The Telegraph Tax Guide
A chapter covering various tax matters relevant to those who run their own business (other than through a company or in partner­ship). Includes a consideration of record-keeping, accounts, taxable business profits, business expenses, allowances and reliefs, losses, and more.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on self-employed taxation. A selection of books on this topic is set out below.
Employment status: a tax guide, 5th ed.
  • Library book
  • 2024
  • D. Kirk
  • Claritax Books
This book guides the reader through the extensive and apparently contradictory case law on employment status. The special cases section includes information on the entertainment, sport and media sector, the farming sector, the legal sector, and healthcare professionals.
Small business tax saving tactics: tax planning for sole traders and partnerships, 11th ed.
  • Library book
  • 2023
  • C. Bayley, N. Braun
  • Taxcafe UK
A practical guide to tax saving techniques that can help self-employed business owners (sole traders and partnerships) to pay less tax on their profits. Includes numerous easy-to-follow examples.
101 practical tax tips, 2023/2024
  • Library book
  • 2023
  • S. Bradford
  • Tax Insider
A collection of tax planning tips, aimed at all taxpayers who are looking for effective and safe ways to save tax. Covers a range of taxes, including income tax, capital gains tax, and inheritance tax.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 065/23 Construction industry scheme reform
  • Representation
  • 10 Jul 2023
  • PDF (250kb)
A representation dated 10 July 2023 to a consultation published by HMRC on 27 April 2023.
ICAEW REP 050/23 Expanding the cash basis
  • Representation
  • 31 May 2023
  • PDF (250kb)
A representation dated 30 May 2023 to a consultation published by HMRC on 15 March 2023.
ICAEW REP 029/22 Call for evidence income tax self assessment registration for the self employed and landlords
  • Representation
  • 22 Mar 2022
  • PDF (271kb)
ICAEW’s response to HMRC’s call for evidence on Income Tax Self Assessment Registration for the Self-employed and Landlords. ICAEW does not support the suggestions for basing the notification requirement on the date an income source starts or a threshold is exceeded or reducing the period after the end of the tax year allowed for notification.
ICAEW REP 77/21: Basis Period Reform
  • Representation
  • 31 Aug 2021
  • PDF (313kb)
Pushing through proposals to change basis periods ahead of the expansion of Making Tax Digital will cause as many problems as it solves and would be a backwards step for affected businesses, warns ICAEW in its response to HMRC's consultation on aligning basis periods with the tax year. ICAEW has urged the government not to implement to proposals.
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Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Self Assessment: detailed information on GOV.UK
  • Website
  • GOV.UK
Information, guidance and forms relating to various aspects of the Self Assessment system.
Changes to reporting income from self employment and partnerships
  • Website
  • HMRC
Guidance from HMRC on the new tax year basis (also known as Basis Period Reform), which applies from 6 April 2023.
Employment status manual: entertainment industry
  • Website
  • HM Revenue & Customs
Employment status guidance for the entertainment industry. The guidance covers film and video workers, TV and radio workers, theatrical workers and musicians.
National Insurance on GOV.UK
  • Website
  • GOV.UK
Comprehensive hub linking to government guidance on National Insurance including rates and categories, National Insurance for the self-employed, and UK National Insurance for those working outside the UK.
Terms of use

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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