Sole Traders & Small Business

For most sole traders, VAT is something that happens to other, bigger businesses - right up until it isn't. Turnover creeps up, a few good months stack together, and suddenly you're over a threshold you weren't watching, owing VAT you never charged. This guide explains how VAT works, exactly when you have to register, when it can make sense to register voluntarily, which schemes are worth knowing about (and which one to be wary of), and what happens if you file or pay late. I

As a sole trader you're taxed on profit, not turnover - so every legitimate expense you claim comes straight off your tax bill. For most sole traders paying basic-rate income tax plus Class 4 National Insurance, £100 of expenses saves £26. For a higher-rate taxpayer, it's £46. Our guide to how much tax to set aside shows what that means for the money you put by. Yet we see the same two problems again and again: people under-claiming because they didn't know a cost qualified,

It's the question every sole trader asks, usually in the second half of January. When you're employed, tax disappears before your pay arrives. When you're self-employed, every penny lands in your account - and some of it was never yours to spend. The short answer is 25-30% of your profit if you're a basic-rate taxpayer, and more once you earn above £50,270. But the reason that figure looks high, and why it's still right, is the part worth understanding. This guide explains bo

Working for yourself is the easy part. Working out what you owe HMRC, when it's due, and how much to put aside is where most people come unstuck - usually because nobody ever explained the system to them in plain English. This guide does that. It covers what you're actually taxed on, the two separate taxes you pay, what you can claim, when the money is due, and the changes coming down the track. It's the hub of our sole trader series of simple explainers, so where a topic des

Filing a Self-Assessment tax return is a fact of life for self-employed individuals, small business owners and freelancers. Get it right and it's straightforward. Get it wrong, or leave it too late, and it becomes stressful and expensive. This guide covers who needs to file, what you'll need, how the process works step by step, and the significant change that arrived in April 2026 with Making Tax Digital. It's part of our series of simple explainers designed to make tax make