ReceiptTrack

Self Assessment for sole traders: a plain-English guide

Self Assessment is the system many sole traders use to report income and expenses to HMRC. You do not normally send every receipt with the return, but the return is built from your records. The easier you can summarise income, allowable expenses, mileage, working-from-home costs and other relevant income, the less stressful the return becomes. What Self Assessment is, what records feed it, and how to make the yearly return less intimidating.

Key takeaways

• Self Assessment is easier when income and expense summaries are prepared before the deadline.
• Your return may include more than sole trader income, such as employment or property income.
• Payments on account can surprise new sole traders, so check HMRC guidance early.
• Good records reduce the risk of guessing under deadline pressure.

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