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…
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…
The difference between revenue and income is simple: revenue is the total money a business earns from sales or services. Income is what’s left after subtracting costs, taxes, and expenses. Revenue shows the top line;…
Turnover is the total income your business earns from sales before costs. Profit is what’s left after subtracting expenses, taxes, and other deductions. Turnover vs profit is one of the most misunderstood business topics. A…
Sole trader mileage can be claimed using HMRC’s simplified expenses method. For 2026/27, eligible cars and vans qualify for 55p per business mile for the first 10,000 miles, then 25p. Motorcycles qualify for 24p. The…
A sole trader should consider becoming a limited company when managing business risk, retaining profits, attracting shareholders or meeting a client’s requirements justifies the extra cost and administration. There is no universal profit threshold that…
Sole trader vs limited company tax comparisons must include business taxes, personal taxes and National Insurance. Sole traders pay tax on business profits. Companies pay Corporation Tax, while owners may pay tax on salary and…
Every pound you spend on running your business affects your profit. But not every business purchase qualifies for tax relief. For UK sole traders, claiming the correct allowable expenses can reduce taxable profits and, in…
A sole trader tax calculator for 2026/27 should estimate two main liabilities: Income Tax and Class 4 National Insurance. For most sole traders in England, Wales and Northern Ireland, the standard Personal Allowance is £12,570.…
Running a business as a sole trader gives you flexibility, but it also makes you personally responsible for reporting income and paying the correct tax. The 2026/27 tax year runs from 6 April 2026 to…
You normally pay no UK Income Tax or Capital Gains Tax on ordinary lottery winnings themselves. If you win £1 million from Lotto or EuroMillions, the initial £1 million prize does not become taxable simply because…
When the second parent dies, their estate can be subject to UK Inheritance Tax (IHT) at 40% on the taxable value above the available allowances. However, where a married couple or civil partners have unused allowances from the…
A cash bonus is treated as ordinary employment earnings in the UK. HMRC normally collects Income Tax and Class 1 National Insurance through PAYE, and your bonus can also affect deductions such as Student Loan repayments. There…
Private Residence Relief (PRR) can exempt some or all of the gain made when you sell a home from UK Capital Gains Tax (CGT). Full relief is generally available where the property has been your only or…
