Payments on account are twice-yearly payments of tax due at the end of January and July estimated on the basis of your previous year's tax bill.

The Inland Revenue will work out tax for you as long as you sent in your tax return by 30 September. If you don't mind working the tax out yourself, you can leave submitting your return until the 31 January deadline. If you miss this deadline you'll have to pay a £100 fine.

Tax reliefs

You can get tax relief on some of the expenses incurred while running your business.

You can claim tax relief on:

• Travel expenses
• Capital allowances for the cost of buying equipment and machinery
• Cost of maintaining or replacing tools
• Special clothing
• Home phone
• Books
• Entertaining
• Professional fees and subscriptions
• A share of the running costs if working from home