Sole trader mortgage applications: what accounts and SA302s lenders usually ask for
Applying for a mortgage as a sole trader can feel more complicated than applying as an employee. You may have a strong income, loyal customers and a healthy business, but lenders still need clear proof that your earnings are reliable. That is where your accounts, SA302s and tax year overviews come in. These documents help […]
Hiring subcontractors as a sole trader: tax, invoices and record-keeping points
Hiring subcontractors can be a sensible way to grow when you are a sole trader. You may have more work than you can handle on your own, need specialist skills for one part of a job, or want to take on bigger projects without committing to permanent staff. But once you start paying other people, […]
Taking on your first employee as a sole trader: PAYE, payroll and records explained
Taking on your first employee is a big moment. It usually means your sole trader business is growing, your workload is increasing, and you are ready to get extra help instead of doing everything yourself. It can also feel like a lot to manage. Suddenly, you are not just looking after customers, invoices and expenses. […]
Closing as a sole trader: what to tell HMRC and what tax return you still need
Closing as a sole trader can feel like a big step, even if the decision is the right one. You may be moving into employment, retiring, switching to a limited company, or simply stopping because the business no longer works for you. Whatever the reason, there is one thing you should not ignore: HMRC still […]
Sole trader losses: how they affect your tax bill and future profits
Running a business as a sole trader gives you freedom, but it also means your income can go up and down. Some months are strong, while others feel much tighter. If your expenses are higher than your income for the year, you may make a trading loss. That can feel worrying at first. No one […]
Sole trader profit vs drawings: why taking money out is not a business expense
When you run your own business as a sole trader, it can feel natural to think of the money you take out as your “wages”. After all, you have worked for it, earned it, and used it to pay your bills. But for tax purposes, drawings are not the same as wages. They are also […]
Payments on account explained for sole traders in 2026
If you are a sole trader, payments on account can come as a shock the first time they appear on your Self Assessment bill. You may think you are only paying last year’s tax, then suddenly HMRC asks for extra money towards next year’s bill as well. The good news is that payments on account […]
PAYE and self-employed at the same time: how your tax return works
You can be employed and self-employed at the same time in the UK. It is more common than many people think. You may have a full-time job and freelance in the evenings, work part-time on PAYE while building a business, or take on contract work alongside regular employment. The important point is this: your PAYE […]
Sole trader National Insurance explained for self-employed workers
National Insurance is one of those self-employed costs that often gets pushed to the back of your mind until your Self Assessment tax return is due. You may know you need to pay Income Tax, but National Insurance can feel less clear, especially because the rules for sole traders have changed in recent years. If […]
How much tax does a sole trader pay in the UK?
If you work for yourself, one of the first questions you are likely to ask is simple: how much tax will I actually pay as a sole trader? The honest answer is that it depends on your profit, not just your sales. You do not pay tax on every pound that comes into your business. […]