Skip to Navigation
Home › Resources › Personal › Introduction to the tax system

Introduction to the tax system

An overview of how the tax system operates, including self assessment, corporation tax, inheritance tax and the taxation of earnings from self-employment for sole traders, partners and partnerships.

…

This content is only available to our registered users.

Please log in or create a free account, to gain access to our extensive business, personal and tax guides.

The tax system for the self-employed

If you start working for yourself, you must register with HMRC as soon as possible after you start trading, and by 5 October following the end of the tax year in which you started self-employment at the latest.

In the construction industry

There are special tax rules affecting the construction industry, which are designed to ensure that tax is paid by workers in the sector whether they are employed or self-employed.

Vehicle mileage rates for the self-employed

The use of mileage rates is an optional alternative to keeping detailed records of actual expenditure.

An introduction to tax planning

Tax planning is the legal process of arranging your affairs to minimise a tax liability. Tax planning is a core component of our services.

Claiming tax deductible expenses when employed

Very few expenses are tax-deductible from earnings from employment, though a number of settled tax cases have confirmed that the scope is wider than previously thought.

An introduction to self-assessment

It is a fundamental part of the self assessment system that responsibility lies with you, the taxpayer, to file tax returns and pay the correct amount of tax, and before the payment deadline - you must not wait for HMRC to ask.

Domicile

Domicile is the country you regard as your natural home. You can only have one domicile at any time. Your domicile can be of origin, choice or dependency. The most common type is domicile of origin. In the UK you can also be ‘deemed domiciled’.

Residence

Residence is determined by a number of factors including how many days you spend in the UK, where you work and where you have homes. A person may be resident for tax purposes in more than one country in which case their status may be determined by tax treaties between the two countries.