Time Tracking for Freelancers — What HMRC Expects
HMRC does not require freelancers to use a specific time tracking method, but you are expected to keep records that support your self-assessment tax return and any VAT returns if applicable. Accurate time records help you calculate income correctly, evidence your working pattern, and maximise legitimate business expense claims.
Why Freelancers Should Track Time
Beyond tax compliance, tracking time as a freelancer serves several practical purposes:
- Accurate invoicing — charge clients for exactly what you worked
- Profitability analysis — understand which projects and clients are worth your time
- Tax evidence — support your self-assessment figures if HMRC investigates
- Business planning — spot patterns in how you spend your working hours
What HMRC Expects from Freelancers
HMRC requires you to keep records for at least 5 years after the 31 January submission deadline for the relevant tax year. These records should include:
- Income received (invoices and bank statements)
- Business expenses claimed
- Evidence supporting expense claims
For expenses related to time (e.g., home working, travel, professional fees), time records provide supporting evidence. If you work from home, records showing your working pattern support the basis of your home office expense claim.
VAT and Time Records
If you are VAT-registered, time records help you:
- Allocate time between taxable and exempt activities (for partial exemption calculations)
- Evidence the business purpose of expenses under scrutiny
- Separate personal and business use of assets
Best Practice for Freelancer Time Tracking
- Log time in real time — retrospective estimates are unreliable and indefensible
- Record by project or client — not just total hours for the day
- Include brief notes — what you worked on (supports expense evidence)
- Export regularly — keep records outside any single app in case it disappears
HonestHours is a free Chrome extension designed for freelancers who want simple, reliable time tracking without a subscription. One-click timers, project labels, and exportable weekly reports.
Install free at honesthours.io.
Frequently Asked Questions
Do freelancers need to track hours for HMRC?
There is no specific legal requirement to track hours, but time records support your self-assessment return, expense claims, and any HMRC investigation. Keeping records is strongly advisable.
How long should a freelancer keep time records?
At least 5 years after the 31 January deadline for the relevant tax year. For example, records for the 2023/24 tax year should be kept until at least 31 January 2030.
Can time tracking records be digital?
Yes. HMRC accepts digital records. A time tracking app, spreadsheet, or exported CSV all qualify as adequate records.
What is the easiest time tracking tool for freelancers?
HonestHours is a free Chrome extension that lets you track time with one click, label by project, and export reports. No account required. Available at honesthours.io.
Track time free — no subscription
HonestHours is a free Chrome extension for small businesses and freelancers.
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