Self-employed guides & resources
Practical guides for UK sole traders, freelancers, and self-employed professionals — from registering with HMRC through to knowing when it's time to incorporate. Written by ACCA and AAT qualified accountants.
What is a Sole Trader? - Definition, Advantages, Tax Responsibilities
A sole trader is a UK self-employed individual who runs their business personally, with no legal separation between owner and business. They keep all profits after tax, are personally liable for debts, and register with…
How to Register as Self-employed in the UK
To register as self-employed in the UK, you must sign up with HMRC for Self Assessment online at no cost. You need to register by 5 October…
Tax-Free Childcare for the Self-employed
Self-employed parents in the UK can use Tax-Free Childcare (TFC) to get a government top-up of £2 for every £8 paid into an online…
Accounting Guide and Best Accounting Software for Freelancers
Freelancers in the UK need to track income, expenses, and tax obligations from the start. Cloud-based accounting software such as…
FLARE Framework - Improve Happiness and Satisfaction at Work
The FLARE framework helps self-employed individuals structure their approach to workplace happiness around five pillars: Flexibility and…
10 Advantages of Being a Sole Trader
Sole traders benefit from full control and decision-making speed, keeping all profits after tax, minimal setup costs, simpler accounting…
How to Pay Yourself as a Sole Trader
As a sole trader, you pay yourself by withdrawing money from your business, known as drawings. Drawings are not taxed at withdrawal…
Self Employed Tax - What You Need to Know for 2024/25
Self employed tax rates UK for 2025/26 include income tax at 20% on earnings between £12,570-£50,270, 40% on £50,270-£125,140, and 45%…
Explore our services
Looking for something specific? Browse our specialist accounting services for UK contractors, freelancers, and small businesses.
Dedicated accountants for UK sole traders and freelancers. Self Assessment included.
We prepare and file your SA100 — from £198/year.
Incorporation, HMRC registrations, and structure advice in one place.
Full accounting for growing businesses — VAT, payroll, and year-end accounts.
Frequently asked questions
When should a sole trader switch to a limited company?
The crossover usually sits around £30,000–£40,000 of annual profit, but it depends on how much profit you need to take out personally. Below that, the extra compliance of a Ltd company often outweighs the tax saving. Above it, dividends typically start to win. An accountant can model your specific numbers.
How much should a sole trader put aside for tax?
A safe rule of thumb is 25–30% of profit — that covers income tax (20% or 40%), Class 2 and Class 4 National Insurance. If your profit crosses £100,000 or you trigger payments-on-account, the ratio climbs. Keep the money in a separate savings pot.
Is sole trader still the right setup for you?
Book a free 20-minute consultation with a qualified accountant. We'll model your numbers and tell you plainly whether a Ltd company would save you money.