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
*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
IT Contractors Industry Insights
Essential information about working as a it contractors in the UK
Average Hourly Rate
£40 – £100
Day rates of £400-800 common; specialists can exceed £1,000/day
Common Structure
limited company
Limited company is standard for IT contractors; provides tax efficiency outside IR35
IR35 Considerations
May apply to this profession
IR35 rules may affect your tax status. Check your employment status carefully for each contract.
Required Certifications & Qualifications
When Do IT Contractors Earn Most?
Understanding seasonal demand helps you plan your income and expenses throughout the tax year.
Peak Demand Periods
Quieter Periods
Industry Insight
Contract renewals often align with client financial years
Tax tip: During quieter periods, use the time to organise receipts, update your records, and plan for upcoming tax deadlines.
Tax Tips for IT Contractors
Specific tax considerations to maximise your deductions and stay compliant
IR35 status is critical — inside IR35 significantly reduces take-home pay
Professional subscriptions and training are deductible
Home office equipment is deductible if working from home
Consider IR35 insurance for peace of mind
These tips are based on UK tax rules for the 2024/25 tax year. For personalised advice, consult a qualified accountant.
How to File Your Tax Return
Follow these simple steps to complete your Self Assessment
Gather Your Documents
Collect income records, receipts, and expense statements
Enter Income & Expenses
Add your earnings and claim allowable expenses with our guided flow
Review Your Calculation
See exactly how much tax you owe with real-time calculations
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.
Ready to File Your Tax Return?
Join thousands of UK it contractors who trust QTax for their Self Assessment