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Tax & HMRC

Understanding how tax works is essential if you’re self-employed.

This section explains how the UK tax system applies to sole traders, including Income Tax, National Insurance, Self Assessment, and VAT.

You’ll also find guides covering common issues such as tax deadlines, penalties, record-keeping requirements, and the upcoming Making Tax Digital (MTD) rules.

Whether you’re just starting out or want to make sure you’re meeting HMRC’s requirements, these guides explain the key rules in plain English.

Start with these guides

  • What taxes do you pay if you work for yourself?
  • How does Self Assessment work if you’re self-employed?
  • What is Making Tax Digital (MTD) for Income Tax?
  • What is VAT and when do you have to register?
  • Use our sole trader tax calculator

Self Assessment and tax returns

  • Common Self Assessment mistakes
  • How long you must keep tax records
  • How to register for Making Tax Digital
  • MTD deadlines explained

National Insurance and allowances

  • National Insurance for the self-employed
  • The trading allowance explained
  • High income child benefit charge
  • Student loan repayments for the self-employed

VAT and business taxes

  • VAT threshold explained
  • VAT guide for small businesses
  • Flat Rate VAT scheme explained

Tax mistakes and common problems

  • Registered twice with HMRC?
  • HMRC interest rates on late tax payments
  • Business Asset Disposal Relief explained
mtd deadlines

MTD ITSA deadlines explained: when you need to submit and what to file

March 3, 2026
Making Tax Digital for the self-employed: who it applies to, quarterly deadlines, and how to prepare before the April 2026 deadline.
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sole trader mistakes self assessment

10 self assessment mistakes sole traders make every January (and how to avoid them)

January 14, 2026
Common errors sole traders make at tax return time, from payments on account shocks and late payment penalties to MTD changes in 2026. Be prepared!
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register self employed

How to register as self-employed with HMRC – the key steps

December 17, 2025
You’re self-employed if you work for yourself and aren’t paid through PAYE. If you earn more than £1,000 a year this way, you need to register with HMRC.
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dividend tax increase april 2026

Small company owners hit hard by April 2026 dividend tax increase

November 26, 2025
In today's Autumn Budget, the Chancellor confirmed that the basic and higher rates of dividend tax will rise by two percentage points from April 2026.
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HMRC reminds Christmas side hustlers to check if they need to pay tax

HMRC reminds Christmas side hustlers to check if they need to pay tax

November 13, 2025
HMRC has issued a festive reminder to anyone making extra money from market stalls and other seasonal side hustles, to check if their earnings are taxable.
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studen loan sole trader

How do student loan repayments work if you’re a sole trader?

November 3, 2025
How do student loan repayments work when you’re self-employed?. Find out how HMRC calculates what you owe, and how much you’ll repay via Self Assessment.
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31st October paper Self Assessment deadline: who it applies to

31st October paper Self Assessment deadline: who it applies to

October 22, 2025
The paper Self Assessment deadline is 31st October. Find out who can still file on paper, what happens if you're late, and how to avoid HMRC penalties.
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is vat number valid UK or EU

How to check if a UK or EU VAT registration number is valid

October 7, 2025
If you have a new UK or EU customer or supplier, you should check the VAT registration number (VRN) they have supplied is valid. Here are three ways you can do so.
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register twice utr sole trader

What to do if you accidentally register twice with HMRC as a sole trader

October 6, 2025
Accidentally registered twice as a sole trader with HMRC? Learn how to fix duplicate UTRs, avoid penalties, and get your Self Assessment record corrected.
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october 5th self assessment hmrc deadline

What is the October 5th Self Assessment deadline and what happens if you miss it?

September 29, 2025
If you became self employed during the previous tax year, make sure you register for Self Assessment by 5th October to avoid HMRC penalties. What happens if you miss this deadline?
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