Mileage allowance for sole traders – 2026/27 rates and April 2027 changes
Mileage allowance for sole traders in 2026/27: current HMRC mileage rates, qualifying journeys, record-keeping requirements and tracking apps.
Accounts & Expenses
Keeping on top of your accounts is a basic part of working for yourself.
This section covers recording expenses, tracking income, preparing invoices, choosing accounting software and keeping the records you need for Self Assessment.
Making Tax Digital is also changing how many sole traders keep records and report their income to HMRC. Our Making Tax Digital guide explains who must follow the rules and what you need to do.
Whether you handle the bookkeeping yourself or use an accountant, understanding the basics will save you time and help you avoid expensive mistakes.
Making Tax Digital
Bookkeeping and records
Invoices and payments
Accounting software and accountants
- Find the best self-employed accounting software
- Accounting software versus 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 using only Xero?
- How to switch accountants as 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?
What happens if your income falls below the MTD threshold?
Has your dropped below the Making Tax Digital threshold? Find out if you can leave MTD for Income Tax, how the three-year rule works, and what to do next.
The best accounting software for sole traders (2026)
Sole traders can choose from a host of online accounting software packages. These tools help manage your finances and come packed with time-saving features.
How much should you pay for an accountant if you’re self-employed?
Guide to typical sole trader accountant fees, what’s included, and how to choose the right accountancy service for your business and within budget
Can I claim clothing as a business expense if I’m self-employed?
Find out when you can claim clothing as a self-employed business expense, including uniforms, PPE and what HMRC allows (and doesn’t).
How to switch accountants as a sole trader (without the stress)
How to switch accountants as a sole trader – what to check, how the process works, and tips for choosing the right new accountant.
What happens if your accountant makes a mistake on your tax return?
If your accountant makes a mistake on your tax return, you may still owe the tax – but an HMRC penalty is not automatic. Here’s what to do and when reasonable care matters.
Can I backdate business expenses before I registered as self-employed?
Can you claim business expenses before registering as self-employed? Find out what HMRC allows, the time limits, and how to record pre-trading costs.
Can I manage my sole trader business using only Xero?
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.
Home office expenses for the self-employed: what you can claim
Self-employed and working from home? Learn how to claim household expenses, including rent, utilities, and simplified flat rates.