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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
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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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.
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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.
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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.
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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.
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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.
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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.
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hmrc trading allowance 1000

What is the £1,000 trading allowance – how does it work?

July 29, 2025
How the UK trading allowance works, who can use it, when to register with HMRC, and what changes with the new £3,000 threshold from 2027.
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