Nobody enjoys paying tax. Especially not freelancers. Your margins are tight as it is, without needing to set aside a portion of your income to pay HMRC their due. But there are ways you can potentially cut your tax bill.

It’s never too early to start thinking about pensions. Instead of seeing it as an expense, think of it as an investment in your future—an investment that comes with a great incentive!

When you pay into a pension, you end up paying less tax. Technically, you’ll still pay it, but you’ll get it back.

Taxes can be complicated, but here’s the simple version: when you contribute to a pension, you get tax relief. This means a percentage is paid back into your pension, usually around 20%. While this might not change your overall tax bill right away, it means more money for you in the future, which is definitely something to appreciate.

Get used to claiming for everything you can. Spend money on advertising? That’s an expense that comes out of your profits and lowers your tax bill. Accountancy fees? Deductible expense. New printer? Deductible expense.

And that’s not all, there are marriage allowances, working from home allowances, and a whole host of others. Make sure you don’t miss out and look at what you’re eligible for. It all soon adds up.

It’s not just pensions where you see tax relief. You also get tax relief on charitable donations, set at the rate you paid last year.

So if you’ve had a lean year and you want to save a little on the tax bill, make a donation and claim it at the higher rate.

You can claim donations in either the current or previous tax year, making them a nice little tool for bringing down that tax bill.

Did you submit your own self assessment return last year? Did you get the sums wrong, miss an allowance or otherwise end up paying more than you should?

You’re in luck. You can write to HMRC and ask them for what’s called overpayment relief. You just need to prove you’ve overpaid and ask them to repay you.

Of course, this relies on spotting an overpayment in the first place, and for that you might well need some expert assistance.

These aren’t loopholes, just smart strategies any qualified accountant would recommend. However, many new freelancers spend more on accountants than on their actual taxes.

By choosing an affordable service like Penny Ledger, you can save money overall. An affordable service that will help you submit your tax returns and ensure you’re claiming all the allowances you’re entitled to.