Understanding UK Tax Compliance Tax compliance in the UK is essential for running a successful freelance business. Freelancers must follow various HMRC regulations, including: Accurate record-keeping. Timely submission of tax returns. Proper invoicing practices. Failure to comply can lead to penalties, fines, and sometimes serious legal issues. For example, HMRC reports that in 2021, around 7% of taxpayers paid their taxes late , incurring penalties. To remain compliant, free