Tax tips for sole traders and landlords
Straightforward guidance on allowable expenses, deadlines and the mistakes that cost people the most.
Allowable expenses
Anything you buy wholly and exclusively for the business is fair game: stock and materials, tools and equipment, business insurance, software and subscriptions, a reasonable share of your phone bill, and mileage or fuel for business travel. Mixed personal and business use needs splitting fairly; a phone you use half for work goes down at 50%, not 100%.
Deadlines to know
Register with HMRC by 5 October after the tax year you started trading. Paper returns are due by 31 October, online returns and your balancing payment by 31 January. If you're in Making Tax Digital for Income Tax, quarterly updates are due 7 August, 7 November, 7 February and 7 May, with your Final Declaration also due by 31 January.
Common mistakes
The ones that cost people the most: not keeping receipts, guessing mileage instead of logging trips, forgetting payments on account are due alongside your balancing payment, and leaving everything until January instead of checking your position as you go.
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