Last checked 19 October 2026
Starting a business on your own means a lot of new questions at once. This page gathers our guides for new sole traders in one place, in four groups: setting up, money, customers and running the business. Every guide is checked against GOV.UK and other official sources, and each one links to the exact pages we used.
This is general information, not tax advice. Check GOV.UK or speak to an accountant about your situation. Why we say this.
The first steps, in brief
GOV.UK’s Become a sole trader guide says a sole trader works for themselves, is classed as self-employed and makes all the business decisions. It also says:
- you can start trading straight away without registering
- you must register for Self Assessment if you earn more than £1,000 from self-employment in a tax year (6 April to 5 April)
- you must keep records from when you start trading
- you must include your name, and business name if you have one, on official paperwork such as invoices and letters
- you may need licences, insurance or to follow other rules depending on what you do
Our guides below take each of these in turn.
Setup and legal
- Do I need to register with HMRC as self-employed, and when? The £1,000 rule, reasons to register below it, and the 5 October deadline.
- Sole trader or limited company? The differences explained Liability, registering, records and tax, side by side from GOV.UK.
- Do sole traders need a separate business bank account? What GOV.UK says, MTD bank feeds, and how to check deposit protection.
Money
- How much tax should I set aside as a sole trader? How Income Tax, Class 4 National Insurance and payments on account work, with one illustrative example.
- VAT registration explained: the £90,000 threshold and registering early The rolling 12 month and 30 day tests, and voluntary registration.
- Do I need an accountant as a sole trader, or can I do it myself? Free help, main and supporting agents, and how to check an adviser.
- How to work out what to charge as a sole trader Cost-plus, day rates and value pricing, plus the rules on quotes and showing VAT.
- How to write an invoice as a sole trader What GOV.UK says an invoice must include, VAT invoices and payment terms.
- Clients who pay late: your rights and how to chase Statutory interest, the fixed recovery sums, a chasing routine and the formal options.
- Allowable expenses for sole traders, explained What HMRC lets you claim, what it doesn’t, and the simplified expenses flat rates.
Customers and marketing
- Google Business Profile for sole traders Setting up and verifying a free profile, service areas and what Google says helps local ranking.
- Reviews and referrals: getting more, within the rules Asking for reviews, what the CMA bans, and keeping referral rewards above board.
Operations and growth
- Bookkeeping software for new sole traders: where to start What you need on day one, what MTD software must do, and HMRC’s software finder.
- Keeping business records as a sole trader What to keep, cash basis or traditional accounting, and how long to keep records.
More guides for each group are on the way.
Where Making Tax Digital fits
Making Tax Digital (MTD) for Income Tax changes how sole traders and landlords keep records and report to HMRC once their qualifying income is over the threshold. GOV.UK says that is over £30,000 on your 2025 to 2026 tax return if you’re starting on 6 April 2027, and over £20,000 on your 2026 to 2027 return for 6 April 2028. Start with our MTD hub, then:
- The £30,000 MTD threshold explained
- MTD quarterly deadlines 2027 to 2028
- Can I keep using spreadsheets for MTD?
- MTD penalties from April 2027
- MTD exemptions
- How to sign up for MTD for Income Tax
- MTD quarterly updates explained
Official help
- Set up a business on GOV.UK compares the main business structures
- Check what taxes may apply to you as a sole trader is HMRC’s own checker
- Get help with tax lists HMRC contacts and free advice charities
Spotted something out of date? Our corrections page explains how to tell us.