Supporting the self-employed – since 2004
Skip to content
ByteStart ByteStart

Start a business as a Sole Trader or Limited Company

bright ideas sole trader accountant
  • Go Self Employed
  • Tax & HMRC
  • Accounts
  • Banking
  • Insurance
  • Protection
  • Pensions
  • News
  • Limited Company
bright ideas sole trader accountant

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
badr sole trader entrepreneurs relief

Business Asset Disposal Relief (BADR) – was 10%, now 14%, rising to 18%

September 21, 2025
Business Asset Disposal Relief (BADR) reduces your capital gains tax bill if you sell your business. How does BADR works and what are the current rates?
Read More
business rates self employed

Business rates and small business rate relief explained

September 2, 2025
Business rates are the non-domestic equivalent of council tax. How they are calculated, multipliers for 2025/26, and how small business rate relief works.
Read More
unique taxpayer reference UTR

UTR number explained – what it is, when you need one, and how to get it

August 23, 2025
A Unique Taxpayer Reference (UTR) is a 10-digit code from HMRC used for tax. Find out when you get one, why it matters, and how to register or recover it.
Read More
child benefit high income charge self employed

High Income Child Benefit Charge – what self-employed people need to know

August 8, 2025
Guide to the High Income Child Benefit Charge for self-employed parents. How it works, who it affects, deadlines, NI credits, and planned 2026 changes.
Read More
sole trader tax calculator

Sole trader tax and National Insurance calculator – 2025/26

August 8, 2025
Calculate how much tax you’ll pay as a sole trader in 2025/26, including income tax and National Insurance, based on your business profits after expenses.
Read More
self assessment help

Self assessment tax return help for sole traders

August 8, 2025
Self Assessment guide for sole traders. Covers who must file, deadlines, payments on account, penalties, and how to register with HMRC.
Read More
vat threshold problems self employed

Why the VAT registration threshold is a problem for small businesses

August 7, 2025
The £90,000 VAT threshold often holds small businesses back. This guide explains why some avoid registering, and what the experts say.
Read More
flat rate vat self employed

How the Flat Rate VAT Scheme works (and the Limited Cost Trader rule)

August 5, 2025
Guide to the Flat Rate VAT Scheme for sole traders and small businesses. How it works, the latest HMRC rules, and when the Limited Cost Trader rate applies.
Read More
capital allowances self employed AIA

Claiming capital allowances as a sole trader – what’s allowed

August 1, 2025
A practical guide to capital allowances for sole traders, including what you can claim, current rates, and how the rules differ from limited companies.
Read More
register for making tax digital MTD

How to register for Making Tax Digital for Income Tax (MTD ITSA)

July 31, 2025
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.
Read More

Posts pagination

Previous page 1 2 3 4 Next page
Tide Bank Account – £50 Cashback
Tide business bank account

Free account + £50 cashback via ByteStart

Open a Tide account

Brand new ByteStart guides
  • Subsistence expenses for sole traders: meals, hotels and what you can claim
  • Can sole traders claim insurance premiums as a business expense?
  • Can sole traders claim car or van repair costs as a business expense?



About Us | Cookies | Privacy | Terms | Site Map

©Contract Eye Limited 2004-26 - All rights reserved.
Registered Address: 71-75 Shelton Street, London WC2H 9JQ
Scroll to Top