Short, useful posts on the tax and money stuff that actually hits sole traders: payments on account, CIS refunds, the VAT cliff and more.
Payments on account explained for sole traders: the 150% first bill worked through in pounds, the July payment, how much to set aside, and what reducing them too far costs at 7.75% interest.
Read postThe full sole trader registration process: the £1,000 test, the 5 October deadline, what HMRC asks for, and the first tax bill in real 2026/27 numbers — plus the five things to sort the same week.
Read postWhy 20% CIS deductions almost always overpay your tax, a full 2026/27 worked example of the refund, what the 20% should be taken from, and how to get the money back in weeks rather than months.
Read postHow the rolling 12-month VAT threshold catches growing sole traders, what registration really costs a consumer-facing business, and the strategies that work.
Read postA separate business account is the best habit a sole trader can build. Why we point people at Mettle by NatWest — £0 a month, free FreeAgent for MTD, FSCS cover to £120,000 — and the four limits worth knowing before you open one.
Read postLate payment is a system you can redesign. Sole trader invoicing that works: terms, deposits, automatic chasing, and the 11.75% statutory interest plus fixed compensation you are legally owed on every late B2B invoice.
Read postThe scams that target sole traders, the red flags for each, and the reimbursement right most sole traders do not know they have: up to £85,000 back on bank transfer fraud, claimable within 13 months.
Read postCash basis is now the default for sole traders — but is it right for you? The difference between cash and accruals accounting, the pros and cons, and when to switch.
Read postSole trader insurance in plain English: public liability, professional indemnity, tools cover and the employers' liability you're legally required to have if you hire.
Read postMost sole traders do not owe the ICO fee — and most have never checked. The £52 fee, the exemption that covers ordinary trading, the two things that break it, and the three data protection rules that changed in 2026.
Read postGot a job and a side business? How UK tax works when you're both employed and self-employed — one personal allowance, two NI types, and how to avoid paying twice.
Read postHMRC's flat-rate mileage for cars and vans rose from 45p to 55p on 6 April 2026. Which method now wins for a sole trader — flat-rate mileage or actual costs — with the 2026/27 rules and a worked four-year comparison.
Read postWhat it actually costs a sole trader to employ someone in 2026/27 — employer's National Insurance, the £10,500 Employment Allowance, pension minimums and the sick pay rules that changed on 6 April 2026 — with a worked cost-per-productive-hour calculation.
Read postWhat HMRC actually charges when a sole trader pays Self Assessment late — 7.75% interest, three 5% surcharges, and the 30-day deadline that cancels them — plus how the online payment plan works and a worked example on a £7,392 bill.
Read postRegistering as a CIS contractor, verifying subcontractors, splitting labour from materials, the 19th and the 22nd, nil returns, and the penalty arithmetic on eight months of missed CIS300s — with a worked example on a £3,600 invoice.
Read postEmployees lost the homeworking deduction on 6 April 2026. Sole traders did not. The £10, £18 and £26 flat rates, the actual-cost apportionment, and a worked example on the same house where one room is worth £129 a year and another is worth £1,853.
Read postWhat an HMRC enquiry into a sole trader's tax return actually involves — the 12-month window, the 4, 6 and 20-year discovery limits, the penalty percentages, and a worked example where an £8,300 adjustment ends up costing more than £13,000.
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