If you’re self-employed in the UK, knowing how much tax to put aside can prevent an unexpected HMRC bill from disrupting your finances. Unlike employees who usually have Income Tax and National Insurance deducted through…
Being self-employed gives you greater control over how you work, but it also means taking responsibility for reporting your income and paying the correct tax to HM Revenue & Customs. For many sole traders, freelancers…
Working for yourself gives you control over how you earn, but it also means taking responsibility for your own tax. Unlike an employee whose Income Tax and National Insurance are normally deducted automatically through PAYE,…
If you are self-employed in the UK, the amount of tax you pay depends mainly on your taxable business profit, not simply the amount of money customers pay you. For the 2026/27 tax year, running…
Yes. A sole trader can legally employ staff in the UK. Being self-employed does not mean you have to run the business alone. A sole trader can hire full-time employees, part-time workers, apprentices and other…
Running a successful business can bring an unexpected tax responsibility: VAT registration. If your sole trader business is growing, you need to monitor your turnover carefully. Once your taxable turnover exceeds the VAT registration threshold,…
You complete a £5,000 project in March but your customer does not pay until May. Should you include the £5,000 in your current tax return or wait until the money reaches your bank account? The…
Making Tax Digital is changing how sole traders report their income to HMRC. Instead of relying solely on an annual Self Assessment tax return, affected self-employed individuals must maintain digital records and submit regular updates…
How much National Insurance does a sole trader pay in 2026/27? The answer depends on your annual taxable business profits, your age and the National Insurance thresholds that apply to self-employed individuals. Unlike employees, who…
