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Accounts & Expenses

Keeping on top of your accounts is a key part of running a small business.

In this section you’ll find practical guides on recording expenses, tracking your income and expenditure, choosing accounting software, and keeping proper records for Self Assessment.

We also explain how accounting rules are changing under Making Tax Digital (MTD). From April 2026 many sole traders will need to keep digital records and submit updates to HMRC using compatible software. You can learn more in our guide to Making Tax Digital for the self-employed.

Whether you manage your bookkeeping yourself or hire an accountant, understanding how small business accounts work will save you time, money and stress.

Making Tax Digital (MTD)

  • Making Tax Digital for the self-employed
  • MTD for sole traders – what you need to know
  • Key things to know about Making Tax Digital
  • How to register for Making Tax Digital
  • MTD deadlines explained
  • Accounting software for MTD
  • Using Xero for Making Tax Digital

Accounting software and accountants

  • Find the best self-employed accounting software
  • Accounting software vs spreadsheets
  • Do you need an accountant if you’re self-employed?
  • Do you still need an accountant if you use Xero or FreeAgent?
  • How much should a self-employed accountant cost?
  • Compare sole trader accountants
  • Can you run your business just with Xero?
  • How to switch accountants as a sole trader

Bookkeeping and records

  • Bookkeeping basics for small businesses
  • Accounting deadlines every self-employed person should know
  • A beginner’s guide to self-employed accounts
  • What counts as turnover?
  • What counts as proof of income for a sole trader?

Claiming business expenses

  • What expenses can you claim as a sole trader?
  • How simplified expenses work
  • Claiming home office expenses
  • Mileage allowance explained
  • Travel expenses for sole traders
  • Training expenses explained
  • Equipment and tool expenses
  • Are accounting fees tax deductible?
  • Are software subscriptions tax deductible?

Invoices and payments

  • Free invoice templates for sole traders
  • Setting payment terms for clients
  • Dealing with late-paying clients
  • What to do if a client doesn’t pay
  • Using a debt recovery service
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How to switch accountants as a sole trader (without the stress)

August 19, 2026
How to switch accountants as a sole trader – what to check, how the process works, and tips for choosing the right new accountant.
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Can I manage my sole trader business using only Xero?

July 28, 2026
How much of your business can you manage using just Xero? We look at its key features, the pros and cons, and when you might still need an accountant.
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Do you still need an accountant if you use Xero or FreeAgent?

July 2, 2026
Using Xero or FreeAgent for your accounts? Find out if you still need an accountant, what software can’t do, and how to get the best of both worlds.
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How much should you pay for an accountant if you’re self-employed?

July 1, 2026
Guide to typical sole trader accountant fees, what's included, and how to choose the right accountancy service for your business and within budget
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What counts as proof of income when you are a sole trader

What counts as proof of income when you are a sole trader

June 21, 2026
How to prove your income if you're self-employed. Which documents to use, how to get your SA302 from HMRC, and how much history you need as a sole trader.
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Can sole traders claim equipment and tools as business expenses?

June 16, 2026
How to claim for laptops, tools, phones and other business equipment as a sole trader – including capital allowances and HMRC rules on personal use.
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Mileage allowance for sole traders: HMRC rules and rates for 2026/27

June 2, 2026
Mileage allowance for sole traders in 2026/27: current HMRC mileage rates, qualifying journeys, record-keeping requirements and tracking apps.
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Making Tax Digital is here: four things sole traders should do now

May 29, 2026
With MTD ITSA now in place, what do sole traders and landlords need to know now to smoothly transition to the new system? Four expert tips.
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Simplified expenses – how to claim flat-rate business costs as a sole trader

May 19, 2026
Practical guide to HMRC simplified expenses for sole traders, with flat rates, examples, and links to related tax guides.
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Can sole traders give to charity and get tax relief?

April 12, 2026
If you're self-employed, it is easy to make charitable donations, but they aren't treated in the same way as other business expenses.
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