Does a one-off large job count towards the VAT threshold?
A single large contract can push your taxable turnover over the VAT threshold. Here’s how the rules work, including the separate 30-day test.
Tax & HMRC
Understanding how tax works is essential when 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 guidance on registering with HMRC, claiming allowances, meeting tax deadlines and preparing for Making Tax Digital.
Whether you’re starting out or checking that your tax affairs are in order, these guides explain the rules in plain English.
Start with these guides
Self Assessment and tax returns
Tax mistakes and common problems
Registering with HMRC
National Insurance and allowances
VAT and business taxes
What happens if you go over the VAT threshold by mistake?
If you accidentally go over the VAT threshold, you may need to register retrospectively and pay VAT from an earlier date. Here’s what to do next.
Can I pay myself a salary if I’m a sole trader?
Can pay yourself a salary as a sole trader? Learn how drawings work, what HMRC expects, and how to manage tax and NI when you’re self-employed.
How many years should you keep your tax and accounting records for?
How long sole traders, limited companies, employers and CIS businesses must keep tax records, plus the documents you should retain as per HMRC guidelines.
Can you charge VAT while waiting for your VAT number?
If you’ve applied for VAT registration but are still waiting for your VAT number, you may be unsure whether you should start charging VAT. In most cases, the answer is no. You should not issue a VAT invoice or show VAT as a separate charge until HMRC has confirmed your VAT registration number. However, there’s … Read more
Can a sole trader have more than one VAT number?
Can a sole trader have more than one VAT number? Why most sole traders can only have one VAT registration, even if they run multiple businesses.
How to cancel your VAT registration if you’re self-employed
If you’ve ceased trading, your turnover has fallen, or you’ve changed how you run your business, you may no longer need to be VAT registered.
VAT for the self-employed – what you need to know in 2026
A practical guide to VAT for sole traders in 2026 – when to register, how it works, VAT returns, reclaiming expenses, and how to stay compliant with HMRC.
Claiming capital allowances as a sole trader: what’s allowed
A practical guide to capital allowances for sole traders, including what you can claim, current rates, and how the rules differ from limited companies.
How to register for Making Tax Digital for Income Tax (MTD ITSA)
Learn how to sign up for Making Tax Digital for Income Tax as a sole trader. Step-by-step guide, software tips, and what you need to register.