Self Assessment returns
Full preparation and submission of your Self Assessment return well before the January deadline, with every allowable business expense correctly identified, recorded, and claimed against the right category.
Self-employed professionals
Accountants for UK sole traders and the self-employed.
You pay Income Tax through Self Assessment, plus Class 4 National Insurance when profits are high enough. Class 2 is no longer compulsory for most sole traders from 6 April 2024, though voluntary Class 2 can still matter if profits are low. Payments on Account are due in January and July. Making Tax Digital for Income Tax now applies if your qualifying self-employment and property income is over £50,000.
There is also the question of whether the next pound of profit is better earned as a sole trader or through a limited company. We keep the numbers current through the year.
- Is this for me?
- We work with the self-employed: sole traders, freelancers and small-business owners who want an accountant who helps plan ahead.
- What's covered
- Self-assessment tax returns, bookkeeping on cloud software, VAT where registered, and a clear view on whether incorporating as a limited company would save tax, modelled against your actual numbers.
- What it costs
- Fees scale with whether incorporation is on the table for the year ahead and whether you are VAT registered yet. The fees page sets out the bands.
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Most sole-trader returns are straightforward. Here is where people get them wrong.
Most sole-trader returns file without a problem. The ones that don't usually trip up in the same few places.
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Payments on Account treated as a January surprise.
HMRC's advance demand on next year's tax: 50% in January, 50% in July, on top of the bill already due. The answer is to forecast what you will owe in the second year while you are still in the first, before the bill arrives.
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Use-of-home and vehicle apportionments without supporting records.
A reasonable percentage on its own does not survive an enquiry. We document the basis (rooms used, hours worked, mileage logs) so the figure on the return is the figure HMRC would arrive at independently.
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Choosing between the trading allowance and actual expenses.
The £1,000 trading allowance is not automatic, and it is not always the best option. We compare it with your actual allowable expenses and claim whichever gives the better result for your situation.
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The MTD threshold crossed unnoticed.
Qualifying income over £50,000 now triggers mandatory quarterly digital filing. The trigger is gross income from self-employment and property, not profit, so a sole trader who tracks profit can cross it without realising.
Each is straightforward to head off in advance and difficult to unwind once it has happened. Our Self Assessment work, your Class 4 National Insurance position, any voluntary Class 2 question, the Payments on Account schedule, and your MTD readiness all sit under the same fee, so the figure on the eventual return is the figure you already saw two months earlier.
Payments on Account, plainly: if your tax bill exceeds £1,000, HMRC takes 50% of next year's expected bill in January and 50% in July, on top of the bill you are already paying. We forecast the second-year squeeze in your first profitable year, so the cash is reserved before the demand lands.
2026 change
Making Tax Digital (MTD) for ITSA
Since 6 April 2026, sole traders with qualifying self-employment and property income over £50,000 must keep digital records and file quarterly updates to HMRC using recognised software. The annual Self Assessment routine is replaced by four updates plus a year-end tax return filed through MTD-compatible software.
We handle the move into MTD-compatible cloud software, set up the quarterly submissions, and track each deadline so your return is ready before it is due. Read our MTD for ITSA guide for the full technical breakdown.
- Migration to MTD-compatible cloud software, configured for your trade
- Quarterly digital submissions filed on your behalf
- We file well before every deadline
What changed in April 2026
£50k+
Qualifying income threshold for the first MTD phase.
4x Quarterly Filings
Replacing the single annual return with four mandatory software-driven updates to HMRC, plus a final end-of-year declaration.
Check whether this affects you. We will get your software set up.
What's covered for sole traders
Tax and NIC calculation
A clear breakdown of your Income Tax and Class 4 National Insurance, plus whether voluntary Class 2 is relevant to your State Pension record, calculated from your current numbers so you know the total figure months before it is due.
Payments on Account
If your tax bill exceeds £1,000, HMRC demands advance payments in January and July. We forecast these so you can reserve the cash, and apply to reduce them if your income drops.
VAT registration
If your turnover approaches the £90,000 threshold, we manage your VAT registration and quarterly returns.
Incorporation check
We run the numbers to find the profit level where incorporating starts saving money after salary, dividends, employer's National Insurance, and the 26.5% effective marginal rate between £50,000 and £250,000 of company profit.
Cloud bookkeeping
Setting up cloud bookkeeping software to capture receipts and make year-end easier.
Key dates across the tax year
Late submission or late payment triggers automatic HMRC penalties. Every window is tracked for you and the return goes in well before each deadline, not at the last minute.
- End of the tax year
- The reference point. Every figure on the self-assessment return is for the twelve months ending this date.
- Online return submission
- The legal deadline for the return itself and the Income Tax due. Late filing triggers an automatic GBP 100 penalty on day one.
- Second payment on account
- Half the previous year's Income Tax bill, paid in advance against the year currently running. Interest accrues from this date if missed.
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Tax year ends
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April
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Return + payment
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January
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Payment on account
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July
Frequently asked questions
When is the self-assessment deadline?
Online Self Assessment tax returns must be submitted by 31 January following the end of the tax year. If your qualifying self-employment and property income is over £50,000, MTD quarterly update deadlines now apply as well.
Do sole traders pay National Insurance?
Yes, but the Class 2 rule changed from 6 April 2024. Most sole traders no longer have to pay compulsory Class 2 National Insurance. You still pay Class 4 National Insurance if profits are above the Class 4 thresholds, and you may choose to pay voluntary Class 2 if your profits are low and you want to protect your State Pension record. We check both points with your Self Assessment return.
What are 'Payments on Account'?
If your self-assessment tax bill is over £1,000, HMRC requires you to make advance payments towards your next year's bill: 50% in January and 50% in July. This means in your first year of higher profits, you can face 150% of a normal tax bill in a single January. We forecast these and help you reserve the cash before January.
What expenses can I claim as a sole trader?
You can deduct any cost incurred "wholly and exclusively" for business purposes. This commonly includes materials, tools, vehicle costs (actual or simplified mileage), software subscriptions, professional insurance, phone and broadband (business portion), and use-of-home allowance if you work from home. We review your expenses line by line to ensure nothing legitimate is missed; most sole traders under-claim rather than over-claim.
Is an accountant worth the cost for a sole trader?
For many sole traders earning above £30,000, the tax saved through checked expense claims, Payments on Account planning, and incorporation timing advice can exceed the fee. Beyond the numbers, an accountant means HMRC deadlines are handled ahead of time and your figures are checked before they are submitted. If MTD applies to you, quarterly updates make clean records more important.
Keep reading
Service
Limited Company Accountants
Ready to incorporate? We handle the transition from sole trader to limited company.
ServiceDigital bookkeeping
Record-keeping set up so Self Assessment preparation becomes a check-and-confirm exercise.
GuideMTD for ITSA guide
What Making Tax Digital means for sole traders with qualifying income over £50,000: quarterly updates, digital links, and software requirements.
Official HMRC guidance
HMRC guidance explains the current MTD for Income Tax threshold rules. GOV.UK also confirms the post-6 April 2024 Class 2 National Insurance position for the self-employed.
Check where you stand before the next deadline.
A call to go through your current Self Assessment, whether you are above or below the £50,000 Making Tax Digital threshold, and whether incorporating would save you money. A written proposal and fee follow afterwards.
Book an initial consultation