Sole Trader Tax Guides

The 31 July Deadline: Your Second Payment on Account Explained

The second payment on account for 2025-26 is due by 31 July 2026. Who has to pay, how the amount is worked out, how to reduce it and what to do if you cannot pay.

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How Long Can HMRC Investigate a Tax Return?

How far back can HMRC go? The 12-month enquiry window, the 4, 6 and 20-year rules explained simply — and why your own behaviour sets the clock.

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What Happens If HMRC Thinks You’ve Made a Mistake?

A letter from HMRC doesn't automatically mean trouble. What actually happens when HMRC questions a return — nudge letters, checks, penalties and your rights.

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What Can HMRC Actually See? Separating Tax Myths From Reality

Can HMRC see your bank account, PayPal, Vinted sales or crypto? What HMRC can actually access, what it cannot, and why good records matter more than ever.

The Year Is Already Half Gone: Are You Keeping the Right Records?

The calendar year is half gone and the first MTD quarter has closed. A mid-year record-keeping checklist for sole traders who want a stress-free tax season.

Five Years Ago You Could Get Away With It. Today HMRC Probably Already Knows.

Digital reporting, platform data and Making Tax Digital mean HMRC knows far more than it did five years ago. What changed — and what it means for sole traders.

Can I Claim My Home Internet as a Business Expense?

Can sole traders claim home broadband against tax? How HMRC's wholly and exclusively rule applies to internet costs, and how to work out a fair business proportion.

Tax Return vs Tax Refund: Why They’re Not the Same Thing

Tax return and tax refund get used interchangeably, but they mean different things. What each one is, when a refund actually happens, and why CIS workers often get caught out.

Your First MTD Quarter Is Over: What Sole Traders Should Do Next

The first Making Tax Digital quarter closed on 5 July. What sole traders should do before the 5 August deadline — and the habits that make every future quarter easier.

Why HMRC Is Asking More Questions Than Ever Before

More taxpayers are getting letters from HMRC asking for information. Why it happens, why it isn't necessarily bad news, and how good records make the questions easy to answer.

It’s Not Too Late: How to Get Ready for Making Tax Digital Before the First Deadline

Haven't started preparing for Making Tax Digital? You're not alone. A practical, step-by-step guide to catching up before the first quarterly deadline on 5 August 2026.

Making Tax Digital Doesn’t Mean More Tax — Here’s What Actually Changes

One of the biggest myths about Making Tax Digital is that you'll pay more tax. Here's what actually changes under MTD, what stays exactly the same, and why quarterly updates aren't four tax bills.

The Five-Minute Monthly Habit That Could Save You Hours at Tax Time

Most tax stress comes from rebuilding a year of records in January. One five-minute monthly habit makes Self Assessment, Making Tax Digital and expense tracking dramatically easier.

Can I Claim My Mobile Phone as a Business Expense?

Can you claim your mobile phone as a business expense? Here's how HMRC's wholly and exclusively rule works for sole traders, and why most people underclaim.

Side Income

The £1,000 Trading Allowance Explained Simply

The £1,000 trading allowance is one of the UK's most misunderstood tax rules. Here's what it really means, who it helps, and why it's income — not profit.

Payments on Account Explained Without the Panic

Why is your Self Assessment bill bigger than expected? Payments on account explained simply — what they are, why HMRC uses them, and how to plan your cashflow.

The Most Expensive Tax Mistakes Sole Traders Make

Forgotten expenses, mixed business and personal money, surprise payments on account, untracked mileage - the tax mistakes that quietly cost UK sole traders the most every year.

What Expenses Can Sole Traders Claim? The UK Guide Most People Need

A plain-English UK guide to what expenses sole traders can claim against tax - from mileage and home office to software, training and insurance.

The Mileage Mistakes That Cost Sole Traders Hundreds Every Year

Mileage is one of the easiest expenses to claim, yet one of the most badly managed. The common mileage mistakes costing UK sole traders hundreds of pounds every year.

HMRC Compliance Checks: What They Are and Why They Happen

A letter from HMRC about a compliance check does not automatically mean fraud or criminal investigation. Here is what these checks really are, why they happen, and how to handle one.

Why Your Tax Bill Is Higher Than Expected (And What Usually Causes It)

For many sole traders and freelancers, tax feels manageable right up until the bill arrives. Here is why your tax bill might feel higher than expected, and what usually causes it.

Do I Need to Register as Self-Employed? HMRC Rules Explained Simply

Starting to earn money outside a regular job? Here’s when HMRC considers you self-employed, the £1,000 trading allowance, and what to do before registration deadlines.

How Much Can You Earn Before Paying Tax in the UK? (2026 Guide)

The UK Personal Allowance for 2025–26 is £12,570. Here’s how the tax-free threshold works, what happens when you earn more, and how side income and multiple sources affect your tax.

Late Tax Return? What Actually Happens Next

Missing the Self Assessment deadline triggers penalties from day one. Here’s what actually happens, how costs escalate over time, and what you can do to fix it quickly.

April 2026: The New Quarterly Tax Deadlines Sole Traders Must Know

From April 2026, sole traders earning over £50,000 must submit quarterly updates to HMRC under Making Tax Digital. Here are the new deadlines, what to report, and how to prepare.

IR35 in 2026: Are Limited Companies Losing Their Edge?

IR35 reforms have changed the contractor tax landscape. For some contractors, limited companies remain beneficial. For others, the advantages have narrowed or disappeared altogether.

Why Is My Tax So High This Month? Understanding Your Payslip

The common reasons your take-home pay suddenly drops. Understand PAYE tax codes, cumulative adjustments, bonuses, and emergency tax to make sense of your payslip.

April 2026 Tax Changes: What Sole Traders Must Do Before Making Tax Digital Starts

Making Tax Digital for Income Tax begins in April 2026 for many sole traders and landlords. Here's what will actually change, who must comply first, and the practical steps to prepare now.

Why January Is the Worst Time to Do Your Tax Return

Every year millions leave their Self Assessment until January. Here's why that's the worst time to do it — and how spreading the work throughout the year saves stress, mistakes and money.

The £1,000 Mistake: Why Small Business Owners Miss Easy Tax Savings

Most small business owners miss legitimate tax deductions worth hundreds of pounds every year. Travel, home office costs, tools and professional services are among the most commonly forgotten expenses. Here's how to ensure nothing is missed.

HMRC Penalties in 2026: What Triggers Them and How to Avoid Them

HMRC penalties can stack up fast from missed deadlines, late payments and inaccurate returns. Here's what triggers them in 2026 — including the new MTD points system — and how to avoid them.

Why Did My Tax Code Change? What HMRC Knows That You Don’t

Your tax code changed and you don't know why. Here's what HMRC knows about your income, common reasons your code changes, and exactly what to do if it looks wrong.

Sole Trader vs Limited Company in 2026: What's Still Tax Efficient?

The 'go limited, save tax' advice doesn't automatically stack up in 2026. Dividend tax, NIC changes, IR35 enforcement and compliance costs have narrowed the gap. We break it down properly.

How Much Tax Are You Actually Paying? The Hidden Rates Most People Miss

Most people think they pay 20% tax. The real marginal rates — once you factor in National Insurance, allowance tapering and clawbacks — can hit 60%. Here's what you're actually paying.