Self Assessment 2025: The Complete Guide for Freelancers, Contractors & Small Businesses in Soho

From film editors and designers to consultants, influencers and contractors – Soho is full of self-employed professionals keeping London’s creative and business scene alive.

But with HMRC pushing everything towards digital tax and real-time data, Self Assessment 2025 will feel very different if you’re still doing things manually, last minute, or only once a year.

This guide walks through what’s changing, who needs to file, how to keep records, and where you can legally save tax – all written specifically with Soho-based businesses and individuals in mind.

 

1. What Is Self Assessment – And Why 2025 Matters

Self Assessment is the system HMRC uses to collect income tax from people whose tax isn’t collected automatically through PAYE.

You’ll generally need to complete a Self Assessment tax return if you are:

• Self-employed (sole trader)
• A partner in a partnership
• A company director receiving dividends
• A landlord with rental income
• A contractor or subcontractor (often under CIS)
• Someone with significant untaxed income (crypto, investments, foreign income, etc.)

Why 2025 is a big shift

2025 is important because:

• Making Tax Digital (MTD) for Income Tax will bring in quarterly digital updates for many self-employed people and landlords.
• HMRC is using more automated checks – mismatched data, missed income, or unusual expenses get flagged faster.
• Penalties for late filing and late payment are now structured differently and can quickly build up.

For someone living or working in Soho, juggling multiple clients, invoices, or income sources, that means Self Assessment can’t just be a once-a-year panic task anymore – it needs a system.

 

2. Who in Soho Definitely Needs to File a Self Assessment in 2025?

If any of these sound like you, Self Assessment is almost certainly required:

Freelancers & creatives

• Graphic designers, videographers, editors, photographers
• Actors, performers, musicians, DJs
• Copywriters, marketers, social media managers
• Influencers and content creators earning from ads/sponsorship

Contractors & consultants

• IT contractors, business consultants, project managers
• Construction workers under CIS
• Interim managers and specialists working on contracts

Small business owners & directors

• Directors taking a mix of salary + dividends
• Owners running limited companies and also doing freelance on the side

Landlords & mixed-income individuals

• Anyone renting out a flat, room or property in or outside Soho
• People with overseas income, investments, crypto, or other untaxed sources

If you’re unsure, it’s safer to check early than to wait for an HMRC letter.

3. Key Self Assessment Deadlines for the 2024/25 Tax Year

These are the dates most Soho clients get caught out on:

• 5 April 2025 – Tax year ends
• 31 October 2025 – Paper return deadline (most people file online, so often irrelevant)
• 31 January 2026 – Online filing deadline and tax payment due date
• Payments on account – If applicable, due 31 January and 31 July

Missing these not only triggers penalties – it also puts you on HMRC’s radar for future years.

 

4. What Information You Need to Prepare (Soho Edition)

To make your Self Assessment smooth, you should have:

Income

• Invoices & bank statements for freelance/self-employed work
• CIS statements if you’re in construction
• Dividend vouchers and P60/P45/P11D if you also have employment
• Rental income schedules (if you’re a landlord)
• Platform income (YouTube, TikTok, Etsy, OnlyFans, Upwork, Fiverr, etc.)

Expenses

• Software subscriptions (Adobe, Canva, accounting tools, etc.)
• Equipment purchases (laptop, camera, sound gear, phone, etc.)
• Studio or co-working space costs in or around Soho
• Travel & subsistence (client meetings, shoots, events)
• Home office proportion (if you work from home part-time)
• Marketing & website costs
• Professional fees – including accountants’ fees (fully deductible)

Other

• Student loan details
• Pension contributions
• Gift Aid donations
• Any foreign income or tax already paid abroad

The better your records, the more reliefs and allowances you can safely claim.

5. Biggest Self Assessment Mistakes We See from Soho Clients

After working with lots of freelancers, contractors and small businesses in Soho, the same problems keep appearing:

1. Mixing personal and business money

One bank account for everything = messy Self Assessment and missed tax deductions.
Fix: Use a dedicated business account or at least a separate personal account for business.

2. Ignoring small expenses

Coffee shop meetings, small software subscriptions, train journeys to clients – over a year they add up.
Fix: Use an app or digital system to snap & store receipts.

3. Not tracking digital platform income

HMRC is increasingly linking to payment processors and platforms.
Fix: Include all income from Stripe, PayPal, Patreon, YouTube, Etsy, etc. in your books.

4. Claiming “random percentages” for home office

Guessing 50% without evidence can cause issues.
Fix: Use a reasonable method – hours, rooms, or HMRC’s simplified home-office rate.

5. Leaving it all until January

This is the most common Soho problem.
Fix: Start just after the tax year ends – or let an accountant handle it year-round.

6. How Digital Accounting Makes Self Assessment Easier in 2025

 

Rather than spreadsheets and shoe-boxes of receipts, more Soho businesses are moving to digital accounting platforms like Xero, QuickBooks or FreeAgent.

Digital tools give you:

• Live view of your income & expenses
• Automatic bank feeds
• Expense categorisation
• Invoicing & payment tracking
• Real-time tax estimates

Many of our clients in Soho simply send us access to their digital software, and we handle:

• Tax calculations
• Adjustments (capital allowances, reliefs, etc.)
• Finalising and filing the Self Assessment return
• Ongoing advice so next year is even easier

 

7. Tax-Saving Opportunities for Self-Employed & Directors in Soho

Self Assessment isn’t just a form – it’s a big opportunity to legally reduce tax if you plan ahead.

a) Claim all allowable expenses

Don’t under-claim just because you’re scared of “doing it wrong”. With proper records and professional help, you can safely claim what HMRC allows.

b) Use capital allowances

Laptops, cameras, studio gear, office equipment – many qualify for Annual Investment Allowance (AIA), giving you 100% relief in the year of purchase (subject to rules).

c) Consider operating through a limited company

If your profits are consistently higher (often above £35–40k), a limited company structure may reduce your overall tax bill, especially when combining salary + dividends.

d) Pension contributions

Paying into a pension can be extremely tax-efficient for higher earners and directors.

e) Plan for payments on account

If your tax is going up, this can hit cashflow hard. Planning in advance avoids nasty surprises.

 

8. How Maze Accountants Helps Soho Clients with Self Assessment

At Maze Accountants, our goal isn’t just to “submit a tax return” – it’s to give you a clear, stress-free system that works every year.

With Self Assessment, we help Soho clients to:

• Decide whether sole trader or limited company is best
• Set up digital bookkeeping correctly from day one
• Capture CIS deductions, VAT, and expenses in real-time
• Prepare and file Self Assessment returns accurately
• Spot tax-saving opportunities before the year closes
• Communicate with HMRC on your behalf where needed

Whether you’re a one-person creative studio in Soho or a growing small business, we tailor the process so you understand your numbers without getting lost in tax jargon.

 

9. Simple Self Assessment Checklist for 2025 (Soho Version)

 

Use this quick checklist:

1. ✅ Do I need to file? (Self-employed / CIS / director / landlord / other income)
2. ✅ Have I separated business and personal bank activity?
3. ✅ Do I have records of all income (clients, platforms, rental, dividends)?
4. ✅ Are my expenses recorded and backed by receipts/bank data?
5. ✅ Am I using digital accounting or at least a consistent system?
6. ✅ Have I considered whether a limited company is more tax-efficient?
7. ✅ Do I know my Self Assessment and payment deadlines?
8. ✅ Have I asked an accountant to review my situation before filing?

If you answered “no” to several of these, it’s a good time to get professional help before 2025 rules fully bite.

 

Maze Accountants – Soho, London
chessington Business Centre, Cox Ln., Chessington KT9 1SD, United Kingdom
🌐 www.mazeaccountants.co.uk
📞 +44 20 8643 9633

Find Us On Google!

We support freelancers, contractors, self-employed professionals, landlords and small businesses across Soho with Self Assessment, VAT, CIS, payroll, limited company accounts, and ongoing tax planning.

FAQ

1️⃣ Do all freelancers in Soho need to complete a Self Assessment return?

If you earn from self-employment, freelancing, or side work and it isn’t fully taxed at source, you almost certainly need to complete a Self Assessment return.

2️⃣ I’m paid under PAYE and freelance on the side – do I still file?

Yes, if your side income crosses HMRC thresholds or isn’t fully taxed, you’ll need to report it via Self Assessment.

3️⃣ I work under CIS – does CIS mean I’ve already paid my tax?

Not exactly. CIS is tax deducted at source but you still must file a Self Assessment return to calculate your final position. Many CIS workers are actually due a refund.

4️⃣ Can an accountant in Soho file my Self Assessment for me?

Yes. At Maze Accountants, we handle the entire process – from organising your records to filing the return and advising on tax planning.

5️⃣ When is the best time to start Self Assessment 2025 work?

Right after the tax year ends (5 April) – not in January. Starting early gives you better cashflow planning and more time to use any tax-saving strategies.