UK / SOLE TRADERS
Accounting for UK Sole Traders
As a sole trader, freelancer or landlord, your business income and expenses go on your own Self Assessment return, so organised records matter all year. TaxSpex can keep your bookkeeping in order, prepare your Self Assessment return for your review and help you organise digital records as Making Tax Digital for Income Tax is phased in. We confirm your income sources, records and the scope of the work before engagement.
Sole trader accounting services
The package brings together two services. Follow each link for the full scope.
Your year at a glance
The tax year runs from 6 April to 5 April. A simple cycle stops the return from becoming a rush at the end:
- Through the year: income and expenses recorded and bank accounts reconciled on the agreed cycle, with a list of queries and missing records for you to resolve.
- After 5 April: the year's figures brought together into income and expense schedules for your Self Assessment return.
- Before the online deadline: you review the return and calculation summary, and any submission support is provided where agreed and authorised.
- If Making Tax Digital for Income Tax applies to you: digital records kept through the year, and quarterly updates sent by you or your authorised agent using compatible software. Whether TaxSpex supports this is confirmed before engagement.
What to have ready
To discuss the work, prepare the following. The records needed depend on your circumstances, and we provide a tailored list once we understand your income sources. Share personal and tax information only through the secure channel agreed with TaxSpex, not through the enquiry form.
- Your Unique Taxpayer Reference (UTR) and previous tax return
- Bank statements for the accounts your business uses
- Sales invoices or other income records, and evidence for business expenses
- Access to your bookkeeping software, if you use one
- Details of any rental, employment or overseas income
Next deadline: 31 January 2027
As at 5 November 2026, online Self Assessment returns for the 2025 to 2026 tax year, and any tax owed, are due by 31 January 2027. Contact us early so there is time to gather your records and answer queries before the deadline.
Making Tax Digital for Income Tax: getting ready
Making Tax Digital for Income Tax is being phased in for sole traders and landlords registered for Self Assessment, based on their qualifying income from self-employment and property. People within the rules keep digital records and send updates to HMRC every quarter using compatible software. The updates contain totals for each income and expense category, not individual receipts or invoices.
As at 5 November 2026, GOV.UK says people with qualifying income over £50,000 in the 2024 to 2025 tax year should have started from 6 April 2026. Those over £30,000 in 2025 to 2026 will need to start from 6 April 2027, and those over £20,000 in 2026 to 2027 from 6 April 2028. Eligibility rules apply, so check the current guidance for your position.
TaxSpex can help you organise your records digitally and talk through readiness. Quarterly updates, software set-up and any submission work are not assumed: we confirm whether this work is within scope before engagement. Useful points to look at now:
- Whether your records are kept in software, spreadsheets or on paper
- How business income and expenses are kept apart from personal spending
- Which income sources you have: self-employment, property or both
- If you have an agent, how they will act for you when you sign up
Keeping business and personal records organised
As a sole trader, you and the business are not separate: GOV.UK notes that owners are personally responsible for all of the business's debts. Your records still need to show business income and expenses clearly, alongside any personal income, for your Self Assessment return.
A few habits make the bookkeeping and the return easier. Keep business transactions in one place where you can, keep receipts and invoices with the transactions they relate to, and note anything that is partly business and partly personal so it can be discussed. Tell us if you also have employment, rental or overseas income, as these can change the scope.
GOV.UK says sole traders must keep records for at least 5 years after the 31 January submission deadline for the relevant tax year.
Last reviewed: 5 November 2026
QUESTIONS
Frequently asked questions
With TaxSpex, it brings together bookkeeping through the year and preparation of your Self Assessment return, plus help organising digital records for Making Tax Digital for Income Tax. The exact tasks are confirmed in writing before work begins.
The package can suit freelancers and landlords as well as sole traders. Property income, overseas income and capital gains must be discussed before engagement so we can confirm whether they fit the agreed scope.
Do not assume so. Quarterly updates are sent using compatible software with the right authorisation, so whether this work is within scope is confirmed before engagement. We can help organise your digital records and talk through readiness.
You are. You review the return and calculation summary, and any submission support is provided only where agreed and authorised. TaxSpex does not guarantee a refund, tax saving or particular result.
Fees are quoted in GBP after confirming your income sources, transaction volumes, the condition of your records, your software and any catch-up work. Software subscriptions are identified separately.
YOUR NEXT STEP
Discuss sole trader support
Tell us about your income sources, how you keep records now, any software you use and whether Making Tax Digital for Income Tax may apply to you. We will confirm the scope, review steps and fees before work starts.
Ask about sole trader accounting