2026 UK Tax-Saving Tips

Here is some sound tax advice

  • Submit your tax return on time to avoid late submission penalties. With digital submission mandatory, late filings will now be penalised under the new system. Under the UK's Making Tax Digital (MTD) for Income Tax rules, the first quarterly tax submission covering the period from 6 April to 5 July 2026, for sole traders and landlords earning over £50,000, is due by 7 August 2026. There will be no penalties in the first year; thereafter, a late-submission points system will be introduced, aiming to penalise frequent lateness rather than one-off late submissions.

  • Modern software allows us to produce Budgets and Reports that help us plan for tax liability. Additionally, use the Tax Form Calculator to estimate your tax liability and a possible refund.

  • Tidy up your files and paperwork.

  • Allocate money for taxes each month.

  •  Keep business and personal finances separate. Open a business bank account, and you can deduct the bank charges as an expense.

  • Track your business mileage.

  •  Submit a healthy tax return by deducting your private health insurance from your tax bill if you are a director of a limited company. Offer insurance to your employees, too, if you are a sole trader with employees, or a contractor working through a limited company.

  • Set up a retirement plan. If you are self-employed, you make contributions to an occupational pension scheme, such as Nest, and the government backs them up by making additional contributions of 25p for every contributed pound. For higher-tax-rate payers, there is additional tax relief.  

  • Make sure that you claim all tax-deductible expenses, but only the business part! Below is a list of what you can claim.

Working from Home Expenses for the self-employed*

Fixed costs

Mortgage interest or rent

Council tax

Water rates

Insurance

Broadband

Variable costs

Electricity

Gas

Repairs and maintenance

Cleaning

*You can deduct only the business part /working from home expenses from the above costs

Check what expenses to claim for the Corporation Tax

as they differ from the expenses you can claim as Self-Employed

Get in touch if you would like YourTax Assistant to check if you claim all tax-allowable expenses.