SoleTax

Guides

Sole-trader tax, in plain English. Every fact checked against gov.uk, with the date on the page.

Making Tax Digital, explained for sole traders

What's actually changing, whether it applies to you, the quarterly deadlines, the penalties, and five steps to get ready. The whole thing in plain English.

Checked against gov.uk on 4 July 2026

What expenses can you claim as a sole trader?

The everyday categories, the ones that catch people out, and what a claim is actually worth in saved tax.

Checked against gov.uk on 4 July 2026

How much tax will you pay as a sole trader?

Income Tax, Class 4 National Insurance, and a full worked example at £40,000 profit, including Scotland's bands.

Checked against gov.uk on 4 July 2026

Mileage: HMRC's flat rate, explained

55p a mile for the first 10,000 business miles, then 25p. What the rate replaces, and which journeys count.

Checked against gov.uk on 4 July 2026

Payments on account, explained

Why a first tax bill is often 150% of the tax owed, how the two instalments work, and when you can reduce them.

Checked against gov.uk on 4 July 2026

CIS deductions, explained for subcontractors

The 20% deduction, why materials are never touched, and how the money comes back at Self Assessment.

Checked against gov.uk on 4 July 2026

Cash basis: the sole trader's standard, explained

Why an unpaid invoice isn't taxable yet, and what cash basis means for the kit you buy.

Checked against gov.uk on 4 July 2026

What records to keep, and for how long

The 5-year rule, what HMRC expects to see, and what digital records mean under MTD.

Checked against gov.uk on 4 July 2026

Your first year self-employed: tax, step by step

When to register, what a UTR is, when the first return lands, and the one bill nobody warns you about.

Checked against gov.uk on 4 July 2026

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