Guides

Tax, receipts and self-employment in the UK — in plain English, without the jargon.

How long to keep receipts and invoices in the UK

Self-employed? HMRC requires you to keep records for at least 5 years after the 31 January deadline. What to keep, whether scans count, and the penalties for missing records.

6 min read

Are photos of receipts valid for HMRC?

Yes — HMRC accepts clear digital copies of receipts and invoices. What the rules say, when you can bin the paper, and how to photograph receipts properly (MTD-ready).

5 min read

Allowable expenses — what the self-employed can claim

A practical list of allowable expenses for UK sole traders: tools and materials, vehicle costs, working from home, phone, insurance, software. The "wholly and exclusively" rule explained.

7 min read

SA103 expense categories — where each cost goes

The self-employment pages (SA103) group expenses into numbered boxes: cost of goods (17), wages (19), car and travel (20), rent and utilities (21), office costs (23) and more — mapped simply.

6 min read

Mileage allowance vs actual costs — which saves more tax

Two ways to claim your van or car in the UK: HMRC’s 45p/25p mileage rate or actual running costs. How each works, which usually wins, and the rules on mixing methods.

6 min read

VAT registration in the UK — the £90,000 threshold explained

You must register for VAT when rolling 12-month turnover passes £90,000. How the rolling test works, voluntary registration, the Flat Rate Scheme and Making Tax Digital for VAT.

7 min read

Making Tax Digital for Income Tax — what actually changes

From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates. The timeline, the rules and how to prepare.

7 min read

CIS refunds — how subcontractors claim back overpaid tax

CIS deducts 20% at source from construction subcontractors — usually more than the tax actually due. How the scheme works, why refunds happen, and how to maximise yours.

7 min read

How AI invoice data extraction works

Modern AI reads invoices and receipts like a human bookkeeper: vendor, dates, line items, VAT, totals — from photos and PDFs. How it works, accuracy, and where humans stay in the loop.

6 min read

Sole trader vs limited company — which should you choose

Sole trader vs Ltd compared: liability, tax, admin burden, credibility. When staying a sole trader is the smart move and the profit level where a company starts to pay.

7 min read

National Insurance when self-employed — how it works now

Self-employed NI after the 2024 reform: Class 4 charged on profits through Self Assessment, Class 2 effectively abolished (credited). Thresholds, State Pension years and voluntary contributions.

6 min read

Payments on account — why your January bill looks doubled

Payments on account are advance payments towards next year’s tax: two instalments (31 January, 31 July) of 50% of last year’s bill. Who pays them, how to reduce them, how not to get caught out.

6 min read

Your first year self-employed — the complete checklist

Everything to set up in year one as a UK sole trader: HMRC registration and UTR, a separate account, insurance, capturing expenses from day one, the 25–30% tax pot, and key dates.

8 min read

The £1,000 trading allowance explained

Earn under £1,000 from self-employment or side gigs and you usually do not need to register or file. How the allowance works, the allowance-or-expenses trap, and when to register anyway.

5 min read

Registering as a sole trader — step by step

Registering as self-employed is free and online: Government Gateway account, Self Assessment registration, UTR by post in about two weeks. What to prepare and what to do next.

5 min read

Do sole traders need a business bank account?

Legally, no — sole traders can use a personal account. Practically, a separate account is essential and many banks’ terms require a business account for business use. What to pick and why.

5 min read

Employed and self-employed at once — how the tax works

Running a side business alongside a job is normal in the UK: PAYE keeps taxing the salary, Self Assessment covers the business. Personal allowance, tax codes, NI classes and the traps.

6 min read

Pre-trading expenses — claiming costs from before day one

Bought tools, a laptop or training before officially starting? Expenses from up to 7 years pre-trading are usually claimable as day-one costs. The rules, examples and the evidence problem.

5 min read