Your Tax Questions Answered

Let’s be honest — tax can feel like a foreign language.

Whether you’re self-employed, running a side hustle, or just trying to make sense of your payslip, it’s no surprise that thousands of people across the UK turn to Google for answers every single day.

In fact, some questions pop up again and again. That’s why we’ve rounded up the three most Googled UK tax questions — and we’re not just giving you vague advice. We’re breaking them down into clear, simple answers, with real-life examples to help you avoid costly mistakes and feel confident about your finances.

Question 1: What Is My Personal Tax Allowance?

Your Personal Allowance is the amount of income you can earn before you pay any Income Tax in a given tax year.

For the 2025/26 tax year, the standard Personal Allowance is £12,570. This means:

• You pay 0% Income Tax on the first £12,570 you earn.

• Any income above this is taxed according to the UK’s income tax bands.

But here’s where it gets interesting…

If your income is over £100,000, your Personal Allowance is gradually reduced by £1 for every £2 you earn above that threshold.

Example:

• You earn £110,000 in a year.

• That’s £10,000 over the £100,000 limit.

• Your Personal Allowance is reduced by £5,000 (£10,000 ÷ 2).

• So instead of a £12,570 tax-free allowance, you only get £7,570.

• By the time your income hits £125,140 or more, your Personal Allowance is reduced to £0 — and you’ll pay tax on your entire income.

What can you do about it?

You might be able to preserve some or all of your Personal Allowance by:

• Making pension contributions (which reduce your taxable income)

• Using Gift Aid donations

• Spreading income across tax years or between partners (if possible)

💡 Pro Tip: If you’re earning close to £100,000, tax planning could save you thousands. Ask us how.

Question 2: How do I File a Self-Assessment Tax Return?

If you’re:

• Self-employed

• A content creator or freelancer

• Receiving rental income

• Or earning untaxed income (e.g. crypto, side hustles, tips)

…you’ll probably need to file a Self Assessment tax return.

Here’s how to do it:

✅ Step 1: Register with HMRC

You must register for Self Assessment by 5 October following the end of the tax year in which you earned untaxed income. Do it online via GOV.UK.

✅ Step 2: Keep Accurate Records

Track:

• All income (invoices, tips, digital sales, subscriptions, etc.)

• Allowable expenses (more on that below)

• Receipts, bank statements, and business mileage logs

✅ Step 3: File Your Tax Return

• The deadline to file online is 31 January (following the end of the tax year on 5 April).

• Log in to your HMRC account, complete the return, and submit it. It’s easier than it sounds if you’ve got your records ready.

✅ Step 4: Pay Your Tax

You’ll usually pay:

• Any tax due for the year just ended

• Plus a “payment on account” (advance payment towards next year’s bill, if you owe more than £1,000)

💡 Example:

Sarah is a full-time content creator earning £45,000 from YouTube and brand deals. She registers in July 2025, files her 2024/25 return by 31 Jan 2026, and pays her tax bill (and possibly her first payment on account for 2025/26) at the same time.

Need help registering or filing? Contact us for a free consultation.

Question 3: What Expenses Can I Claim as a Self-Employed Individual?

If you’re self-employed or running a small business (even as a side hustle), you can claim allowable expenses to reduce your tax bill.

But they must be “wholly and exclusively” for business use — meaning you wouldn’t have incurred the cost unless it was for your business.

Common Allowable Expenses:

• 🖇 Office Costs

• Stationery

• Printer ink

• Phone bills

• Laptop (portion if partly personal)

• 🚗 Travel Costs

• Fuel (for business trips)

• Parking

• Public transport

• Hotel stays (for business-related overnight stays)

• Example: You drive to a video shoot 30 miles away. You can claim 45p per mile for the first 10,000 miles per year — that’s £13.50 for that trip.

• 👥 Staff Costs

• Freelancer payments (e.g., editor, photographer)

• Virtual assistants

• Social media managers

• 📢 Marketing & Advertising

• Instagram and Google ads

• Website hosting

• Branding services

• 🛡 Business Insurance

• Public liability

• Professional indemnity

• Equipment cover

💻 Work From Home? You can claim a flat rate for home office use or a portion of your actual bills (electricity, rent, broadband) based on how much space/time is used for business.

Final Thoughts: Don’t Leave Tax to Chance

Tax doesn’t have to be confusing — but it can be costly if you don’t get it right.

At The Tax Faculty, we’re here to simplify tax for everyone — from side hustlers and influencers to full-time business owners.

📞 Schedule a free consultation if you:

• Aren’t sure what you owe

• Want to claim the right expenses

• Need help with Self Assessment or tax planning

Capital Gains Tax Expertise: The Tax Faculty LLP Managing Partner Charles Tateson Named UK Capital Gains Tax Advisor of the Year 2023

The Finance Monthly Taxation Awards recognises the achievements of tax professionals from around the globe.

Winning such an award is no small feat. It is a reflection of hard work, extensive knowledge, and an ability to navigate the intricacies of the UK tax system.

Read more about Charles and the award here.

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