Business
& Tax
PILLAR FOUR · THE RECEIPTS
For the girlies with side hustles, freelance income, or ambitions to go Ltd. HMRC doesn't care that nobody explained this to you. But we do. So here it is - everything you need to know about running a business, filing your taxes, and keeping more of what you earn. Legally.
✦ When your side hustle income becomes taxable - and what HMRC actually needs from you
✦ The real difference between sole trader and Ltd company - and which one suits you
✦ How to file a Self Assessment tax return without panicking
✦ What business expenses you can legitimately claim to reduce your tax bill
✦ How to save for your tax bill so January never catches you off guard again
HMRC doesn't care that
nobody explained this to you.
But the receipts you keep
could save you thousands.
The girlies are out here building businesses, earning side income, and freelancing - and most of them have no idea what they legally owe, what they can claim back, or how to set themselves up properly. This pillar fixes that.
THE BASICS
Three things HMRC needs you to know
🧾 RULE ONE
The £1,000 Trading Allowance
If your side hustle income is under £1,000 in a tax year you're covered by the Trading Allowance - no tax return needed. Over £1,000? You need to register as self-employed and file. This is the line. Know where you stand.
📅 RULE TWO
The Deadlines That Matter
Register as self-employed by 5th October after the tax year ends. File your online Self Assessment by 31st January. Miss these and HMRC charges automatic penalties - even if you owe nothing. Put them in your calendar right now.
💸 RULE THREE
The Expenses You Can Claim
Equipment, software, a portion of your phone bill, home office costs, travel for work - these reduce your taxable profit, which reduces your tax bill. The receipts you keep could save you hundreds every year. Keep everything.
THE BIG DECISION
Sole Trader vs Ltd Company
OPTION ONE
Sole Trader
✔ Pay Income Tax on profits above your Personal Allowance
✔ Simple to set up - register with HMRC online in minutes
✔ Less admin - one Self Assessment return per year
✘ No separation between you and the business
✘ Less efficient at higher income levels
Best for: early stage side hustles, freelancers earning under £30k or anyone just starting out
OPTION TWO
Ltd Company
✔ Pays Corporation Tax (19% - 25%) rather than Income Tax
✔ More tax efficient above roughly £30k - £35k profit
✔ Legal separation between you and the business
✘ More admin - annual accounts, Confirmation Statements, payroll
✘ More complex to set up and run properly
Best for: consistent income above £30k profit or if you want credibility and legal protection
Business & Tax Receipts
The receipts you keep
could save you hundreds every year.
The ones you don't keep
are a gift to HMRC.
Keep everything. Claim what's yours. That's the receipt. 🖤
A note on this pillar
Tax rules change. Individual circumstances vary. Everything in this pillar is general educational information based on current UK tax law - it does not constitute personal tax advice. Your specific situation may differ. For personalised guidance, always consult a qualified tax adviser. That said - understanding the basics before you speak to one? That's exactly what we’re here for. 🖤
KEEP EXPLORING
Ready for the next receipt?
THE WEEKLY RECEIPT