Self-employment is a way of life for over 4 million people in the UK — from freelancers and contractors to sole traders running established businesses. Whether you’re just starting out, deciding between a sole trader and limited company structure, or managing the complexities of IR35, tax returns, and business expenses, the self-employment landscape has its own set of rules that differ significantly from employment.
The financial rewards of self-employment can be substantial: the ability to set your own rates, choose your clients, claim legitimate business expenses against tax, and structure your income tax-efficiently. But with those rewards come responsibilities — filing Self Assessment tax returns, paying National Insurance contributions, managing cash flow, and planning for periods without income.
Understanding your obligations and rights as a self-employed person is essential from day one. Getting your business structure right, keeping accurate records, claiming all allowable expenses, and planning for tax bills can make the difference between self-employment that thrives and self-employment that struggles.
This guide brings together every self-employment article on PocketWise, covering everything from getting started and choosing your business structure to managing tax, expenses, contracts, and financial planning.
Getting Started & Business Structure
Choosing the right legal structure and registering properly is the foundation of self-employment.
- How to Register as Self-Employed UK — Step-by-step instructions for registering with HMRC, key deadlines, and what information you’ll need.
- Starting a Business Guide UK — A comprehensive guide to starting a business in the UK, from business planning to legal requirements.
- Contractor vs Freelancer vs Sole Trader — The practical and legal differences between these self-employed categories and which applies to you.
Self-Employment Tax & Accounting
Understanding your tax obligations is crucial. These guides cover everything from tax rates to the choice between cash basis and accrual accounting.
- Cash Basis vs Accrual Accounting — Choosing between the two accounting methods for your Self Assessment and understanding the cash basis threshold.
- Ltd Company vs Sole Trader Tax — A side-by-side comparison of the tax treatment for sole traders versus limited company directors at different profit levels.
Expenses & Financial Management
Claiming the right expenses and managing your business finances effectively reduces your tax bill and improves cash flow.
- Business Expenses Self-Employed — A comprehensive list of allowable self-employed expenses, from office costs to travel, with HMRC rules for each category.
- Claiming Mileage Self-Employed UK — How to claim business mileage using HMRC’s simplified mileage rates and what records to keep.
- Best Bank Accounts for Self-Employed — A comparison of business bank accounts for sole traders and limited companies, including free options.
- Small Business Grants UK — Government and private grants available to small businesses and self-employed people in the UK.
Contracting & Freelancing
Guides specific to contractors and freelancers, including day rates, invoicing, and the choice between umbrella and limited company work.
- Contractor Day Rate to Salary — How to convert a contractor day rate into an equivalent permanent salary, accounting for holidays, pension, and benefits.
- Umbrella Company Explained — How umbrella companies work, what you can expect to take home, and when an umbrella is the right choice.
Benefits & Protections for the Self-Employed
Self-employed people have different entitlements to employed workers. These guides cover the support available.
- Self-Employed Maternity Allowance Guide — How to claim Maternity Allowance, eligibility criteria, current rates, and how long it lasts.
- Self-Employed & Pregnant — Financial Rights — A complete guide to financial support during pregnancy for self-employed women.
Mortgages & Insurance for the Self-Employed
Getting a mortgage or the right insurance as a self-employed person requires a different approach.
- Business Rates Explained — How business rates work, small business rate relief, and when you need to pay them.