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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
subsistence expenses self employed

Subsistence expenses for sole traders: meals, hotels and what you can claim

March 13, 2026
A guide to subsistence expenses for sole traders, including HMRC rules on claiming meals, drinks and accommodation while travelling for work purposes.
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sole trader insurance expenses

Can sole traders claim insurance premiums as a business expense?

March 9, 2026
Practical guide to which types of insurance sole traders can claim as expenses, including public liability, professional indemnity and income protection.
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car van repair expenses sole trader

Can sole traders claim car or van repair costs as a business expense?

March 9, 2026
Are car and van repairs tax deductible for sole traders? A clear guide to claiming servicing, maintenance and other vehicle running costs.
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accountant fees sole trader expenses

Are accounting fees tax deductible for sole traders?

March 8, 2026
Are accounting fees tax deductible? This guide explains when sole traders can claim accountant costs as allowable business expenses.
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software subscription sole trader expenses

Are software subscriptions tax deductible for sole traders?

March 7, 2026
Are software subscriptions tax deductible for sole traders? Explanation of the tax rules, examples, and how digital tools are treated in business accounts.
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late payment client invoice

What happens if a client doesn’t pay – what are your options?

March 4, 2026
Unpaid invoices? This guide explains what self-employed people can do when a client won’t pay — from chasing to legal action and recovery options.
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sole trader marketing expenses advertising

Are advertising and marketing expenses tax deductible for sole traders?

February 21, 2026
Sole traders can claim advertising and marketing expenses against their taxable profits if the costs are wholly and exclusively for business purposes.
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expenses bank charges interest self employed

Can sole traders claim bank charges and interest as expenses?

February 21, 2026
Can sole traders claim bank fees, overdraft and loan interest as expenses? What is allowable, what is not, and how to include costs in your tax return.
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self employed accounts

Setting up accounts if you’re self-employed – a beginner’s guide

February 8, 2026
If you start a business as a sole trader, you need to set up an accounting system to record your income and expenses, and work out how much tax to pay.
Read More
making tax digital for income tax self employed

Making Tax Digital (MTD) for Income Tax – guide for the self-employed

February 4, 2026
With HMRC's Making Tax Digital (MTD) for Income Tax coming soon, the frequency of filing returns will increase quite dramatically for the self employed.
Read More

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