This section covers the tax rules for self-employed individuals, or "sole traders".  These are people who trade on their own through an unincorporated business.

These rules also apply to partners in partnerships, but partnership law is a separate issue, and partnerships can have different treatment when it comes to taxing profits and losses.

Want to save tax but reduce tax risk?  In this section you have a series of tax planning guides and compliance checklists.  

Different tax rules apply for different types of expense. These guides summarise the rules, advise you on planning points and tax-traps and with worked examples illustrate what you can and can't claim.

Looking at special rules and what expenses can different trades, professions and vocations claim.

Making Tax Digital (MTD) for Business

  • Income Tax Self-Assessment (ITSA):
    • From April 2024: self-employed businesses and landlords with business turnover above £10,000 report under MTD for ITSA.
    • From April 2024: general partnerships join.
    • From April tba: other partnerships join.
  • Corporation Tax (CT): 
    • From April 2024: companies can start using a MTD for Corporation Tax (CT) pilot scheme.
    • From April 2026: companies join MTD for CT.
  • VAT:
    • From April 2019: VAT registered businesses with turnover exceeding the VAT registration threshold must retain digital records and submit their VAT returns to HMRC using 'functional compatible software'.
    • From April 2022: all VAT registered business report under MTD for VAT.


Enjoying the Practical Tax content on 

Sign up now to receive a unique FREE Tax Planning Tips and Advice Guide & our FREE Newsletter.

.Squirrel ad