HMRC & tax
Tax, National Insurance and allowable expenses
What you pay, what you can claim back, and how to set money aside every month.
What you pay
Income Tax on your profit (income minus allowable expenses) above your Personal Allowance.
Class 4 National Insurance on profits above the lower profits limit. Check GOV.UK each April for current rates and thresholds.
Expenses carers commonly claim
Mileage between clients (using HMRC's simplified mileage rate) — but not your normal commute to a single fixed workplace.
Uniform, PPE, DBS checks, training courses, professional insurance, phone costs used for work and accountancy fees.
Keep receipts and a mileage log. HMRC can ask to see records for up to 5 years after the return deadline.
Setting money aside
A simple rule many carers use is to move 20–25% of every payment into a separate savings account for tax.
General information only — rates and rules change. Check GOV.UK or speak to an accountant for your situation.