Home How It Works Pricing CIS Subcontractors MTD for Tradespeople About Tax Tips Get Started
Back to Tax Tips

Sole Trader Tax Guides

Sole trader tax can feel more complicated than it needs to be. These guides explain the basics clearly, from expenses and records to tax returns, deadlines and mistakes to avoid.

All guides

All sole trader tax articles

Side Income New

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.

Read more
Sole Trader New

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.

Read more
Expenses & Mileage

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Making Tax Digital

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

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.

Read more
Sole Trader

IR35 in 2026: What Contractors and Small Companies Should Watch

IR35 is still very much alive in 2026. From client-size threshold changes to umbrella supply chain PAYE rules, here's what contractors and small companies need to watch this year.

Read more

Free download

Get the Free MTD Checklist

Not sure if you're ready for Making Tax Digital? Download our free checklist and find out in two minutes.

No spam. Unsubscribe anytime.