Self-employed tax
Where should I start?
Follow the journey that matches where you are: starting out, working out profit, estimating tax, or preparing for digital reporting.
- Newly self-employed: Start with Registering as self-employed, then Business records.
- Preparing a tax estimate: Use the Self-Employed Tax Calculator, then read Allowable expenses and Payments on account.
- Unsure about the £1,000 allowance: Read the Trading Allowance guide, then compare with Allowable expenses.
Featured calculators
Featured guides
- Registering as Self-EmployedWhen and how to register for Self Assessment as a sole trader, and what happens in your first year.Read guide
- Trading Allowance ExplainedWhen sole traders can use the £1,000 Trading Allowance instead of deducting actual expenses.Read guide
- Self Assessment Payments on Account ExplainedWhen payments on account apply, how January and July bills are built, and what a first Self Assessment year means.Read guide
All guides in this topic
- Registering as Self-EmployedWhen and how to register for Self Assessment as a sole trader, and what happens in your first year.Read guide
- Business Records for Sole TradersWhat records self-employed people should keep, how long to retain them, and how they support Making Tax Digital.Read guide
- Trading Allowance ExplainedWhen sole traders can use the £1,000 Trading Allowance instead of deducting actual expenses.Read guide
- Allowable Expenses for Sole TradersWhat counts as an allowable business expense, and when the Trading Allowance is better.Read guide
- Cash Basis for Sole TradersHow cash basis accounting works for the self-employed compared with traditional accruals accounts.Read guide
- National Insurance for Sole TradersClass 4 and Class 2 National Insurance for the self-employed — thresholds, rates and how they appear on your bill.Read guide
- Self Assessment Payments on Account ExplainedWhen payments on account apply, how January and July bills are built, and what a first Self Assessment year means.Read guide
- Making Tax Digital for Income TaxWhat Making Tax Digital for Income Tax means for sole traders and landlords, and how the phased thresholds work.Read guide
Frequently asked questions
Do I have to register if income is small?
Gross trading income of £1,000 or less may be covered by the Trading Allowance, but that does not always mean you can ignore HMRC. Read the registration guide and check GOV.UK.
Can I claim the Trading Allowance and expenses?
No. For a trade you choose either the £1,000 Trading Allowance or actual allowable expenses — not both for the same income.
What are payments on account?
They are advance payments towards next year's Self Assessment bill, usually due in January and July, when your relevant amount is over £1,000 and you are not excluded because sufficient tax was collected at source.
Latest guides
- Registering as Self-EmployedWhen and how to register for Self Assessment as a sole trader, and what happens in your first year.Read guide
- Business Records for Sole TradersWhat records self-employed people should keep, how long to retain them, and how they support Making Tax Digital.Read guide
- Trading Allowance ExplainedWhen sole traders can use the £1,000 Trading Allowance instead of deducting actual expenses.Read guide
- Allowable Expenses for Sole TradersWhat counts as an allowable business expense, and when the Trading Allowance is better.Read guide
Official HMRC resources
Future calculators
Planned tools for this topic. They are not live yet — guides above cover the rules in the meantime.
- CIS Tax Calculator
Estimate Construction Industry Scheme deductions and take-home for subcontractors.
Coming later
- VAT Calculator
Model VAT on sales and purchases once VAT registration or flat-rate rules apply.
Coming later
This hub is for general information only. It is not tax, legal or financial advice.