As a freelancer, you work hard for every pound you earn, so it only makes sense to keep as much of it as legally possible when tax season rolls around. Yet, many freelancers in the UK unknowingly leave hundreds or even thousands on the table by missing out on eligible deductions and allowances.
Whether you’re a full-time freelancer or juggling side gigs, here’s how to maximize your tax refund without crossing any lines.
1. Know What You Can (Legally) Claim
The HMRC allows freelancers and sole traders to deduct “allowable business expenses” that are essential for running your business.
Common deductible expenses include:
- Home office costs (portion of rent, electricity, broadband).
- Travel and mileage (if it’s for business purposes).
- Business-related phone bills and subscriptions.
- Marketing, website hosting, and advertising costs.
- Equipment (laptops, software, office furniture).
- Professional services (accounting, legal, or consulting fees)
Tip: Keep receipts and invoices for every expense. If you’re ever audited, proof is essential.
2. Use the Simplified Expenses Method (If It Works for You)
HMRC offers a simplified expenses option for calculating things like:
- Vehicle usage.
- Working from home.
- Living at your business premises.
This method uses flat rates instead of tracking every penny. It’s quicker and easier but always compare with actual costs to see which gives you the higher refund.
3. Track Everything Consistently
Poor record-keeping is one of the main reasons freelancers miss out on deductions. Use tools like:
- Xero.
- QuickBooks.
- A spreadsheet + receipt scanner.
Even better, partner with a cloud-based accountant who can help track and categorize your expenses all year long, not just in January.
4. Don’t Forget Pension Contributions and Charity Donations
Your pension contributions and certain charitable donations may qualify for tax relief, which can reduce your overall tax liability and increase your refund.
Tip: Make sure the charities are registered with HMRC and always keep donation receipts.
5. Consider Carrying Forward Losses
Did your business have a slow year? You may be able to carry forward trading losses to offset future profits — reducing your tax bill in upcoming years. This is something many freelancers overlook.
6. Use a Professional (Yes, It Pays Off)
Doing it yourself might seem like a way to save money, but in reality, many freelancers who file without help miss key deductions and end up paying more. An experienced accountant understands the full tax code, how to apply reliefs correctly, and how to help you legally claim every pound you’re entitled to.
How Asegun Ltd Helps Freelancers Boost Refunds
At Asegun Limited, we work closely with freelancers and self-employed professionals across the UK. With over 25 years of experience, we:
- Identify every eligible deduction.
- Handle your self-assessment tax return with accuracy.
- Offer ongoing tax planning advice.
- Use smart cloud tools like Xero for real-time visibility.
- Charge fixed, transparent fees, so no surprise costs.
Final Thoughts
Maximizing your tax refund as a freelancer isn’t about tricks; it’s about knowing what you’re entitled to, staying organised, and getting professional help when needed. Every deduction matters. Every receipt counts. And every pound saved makes a difference.
Ready to make the most of your next tax return?
Contact Asegun Ltd today and let’s help you claim what’s rightfully yours, the smart, compliant, and stress-free way.
