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For IT Contractors

Tax Return for IT Contractors

Complete your Self Assessment in 8 minutes. Claim all your allowable expenses and submit directly to HMRC.

  • Track equipment expenses
  • Professional development costs
  • Home office deductions
  • MTD-ready for 2026

Example Tax Calculation

Based on typical it contractors earnings £65,000/year

Gross Income£65,000
Expenses5,000
Taxable Profit£60,000
Income Tax£9,486
National Insurance£2,846

*Illustrative example based on 2024/25 tax rates. Your actual tax depends on your specific circumstances.

Allowable Expenses for IT Contractors

Claim these tax-deductible expenses to reduce your tax bill

Computer Equipment

Laptops, monitors, keyboards, and other IT equipment used for work.

Tip: Keep receipts and consider capital allowances for items over £1,000

Software & Subscriptions

Development tools, cloud services, IDE licenses, and professional software.

Tip: Annual subscriptions are fully deductible

Home Office Costs

Proportion of rent/mortgage, utilities, and internet for your home office.

Tip: Use the simplified expenses method (£6/week) or calculate actual costs

Professional Development

Training courses, certifications, and conference attendance.

Tip: Must relate to your current trade to be deductible

More expenses you can claim

Professional memberships (BCS, IEEE)
Technical books and resources
Phone and broadband
Travel to client sites
Accounting software
Co-working space fees
Professional indemnity insurance

How to File Your Tax Return

Follow these simple steps to complete your Self Assessment

1

Gather Your Documents

Collect income records, receipts, and expense statements

2

Enter Income & Expenses

Add your earnings and claim allowable expenses with our guided flow

3

Review Your Calculation

See exactly how much tax you owe with real-time calculations

4

Submit to HMRC

File your tax return directly to HMRC in minutes

Key Deadlines for 2024/25 Tax Year

Don't miss these important dates

5 April 2025

Tax Year Ends

Calculate your final income and expenses

5 October 2025

Register for Self Assessment

If this is your first year self-employed

31 January 2026

Online Filing Deadline

Submit your tax return and pay any tax owed

6 April 2026

MTD Starts (£50k+)

If your income exceeds £50,000, you must use MTD software

Late Filing Penalties

1 day late: £100 fixed penalty

3 months late: £10/day up to £900

6 months late: 5% of tax owed or £300 (whichever is higher)

12 months late: Additional 5% or £300

Plus interest on any tax paid late. Avoid these costs by filing early with QTax.

Frequently Asked Questions

Answers to common questions about tax returns for it contractors

Can I claim for training and certifications?

Yes, as long as the training relates to your current IT skills. AWS, Azure, or similar certifications are deductible. Training for a completely new career would not be allowable.

How do I claim home office expenses?

You can use the simplified method (£6/week without receipts) or calculate the actual proportion of household costs used for business. The latter requires more records but may give a higher deduction.

What about IR35?

If you work through a limited company and are caught by IR35, you may still file a personal Self Assessment. QTax handles both sole trader and limited company director returns.

Related Guides

Explore tax guides for similar professions

Ready to File Your Tax Return?

Join thousands of UK it contractors who trust QTax for their Self Assessment