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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
sole trader class 2 4 nic

What National Insurance do self-employed people pay in 2026/27?

April 6, 2026
Find out how National Insurance works for sole traders, including Class 2/4 rates, how to pay, and how it differs from employee and limited company rules.
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self employed tax

How tax works if you’re self-employed (2026/27)

April 3, 2026
In this guide, we look at the taxes the self-employed pay. We also look at some common mistakes to avoid when it comes to dealing with HMRC.
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sole trader tax calculator

Sole trader tax and National Insurance calculator – 2026/27

April 1, 2026
Calculate how much tax you’ll pay as a sole trader in 2026/27, including income tax and National Insurance, based on your business profits after expenses.
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badr sole trader entrepreneurs relief

Business Asset Disposal Relief (BADR) – 10%, then 14%, now 18%

April 1, 2026
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?
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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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vat sole trader

VAT for the self-employed – what you need to know in 2026

February 1, 2026
A practical guide to VAT for sole traders in 2025 – when to register, how it works, VAT returns, reclaiming expenses, and how to stay compliant with HMRC.
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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.
Read More

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Brand new ByteStart guides
  • Can sole traders give to charity and get tax relief?
  • What National Insurance do self-employed people pay in 2026/27?
  • How tax works if you’re self-employed (2026/27)



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