What expenses can a sole trader claim in 2025?

Filing Self Assessment matters if you run a business as a sole trader. Get this right and you avoid penalties, plan your cash flow, and make smarter decisions about tax and take-home pay. Here’s what you need to know.

Who must register and when

If you earned untaxed income during the tax year, you must register for Self Assessment with HMRC. New sole traders must register by 5 October following the end of the tax year to avoid penalties.

Key deadlines you cannot miss

Paper returns must be with HMRC by 31 October. Online returns must be submitted by 31 January; that is also the usual deadline for paying any tax due. If you want HMRC to collect your Self Assessment bill via your tax code, submit by 30 December. Missing the 31 January deadline triggers an automatic £100 penalty, with further penalties if the return remains outstanding.

What goes on the return

Declare all business income and allowable expenses for the tax year. You can use the cash basis to calculate income and expenses if eligible; this means you account for money when it arrives and when you pay it out, which simplifies bookkeeping for many small sole traders. You do not send receipts with the return, but you must keep them in case HMRC asks.

Allowable expenses to report

Common allowable expenses include office costs, travel and subsistence for business journeys, uniforms and protective clothing, staff and subcontractor payments, stock and materials, business insurance and bank charges, premises costs including a fair proportion of home running costs where applicable, marketing and training directly related to the trade. Only claim the business portion when costs are mixed.

Record keeping and Making Tax Digital

From 2026 Making Tax Digital for Income Tax Self Assessment will be introduced in phases; sole traders should prepare to keep digital records and to submit periodic reports through approved software when required. Even before that change becomes mandatory, using cloud accounting makes Self Assessment faster and reduces errors.

Penalties and how to avoid them

Penalties start with a fixed fine for late filing, and grow if you delay further. If you cannot pay on time, contact HMRC as soon as possible; they often agree Time to Pay arrangements. File early where you can; it gives you time to spot and fix errors and plan how to pay any tax due.

Practical tips for sole traders

• Register for Self Assessment as soon as you start trading; don’t wait.

• Use the cash basis if it suits your business; it often simplifies small business accounting.

• Keep digital records of income and expenses; store receipts and invoices for at least the minimum period HMRC requires.

 • Consider flat rate simplified expenses for home and vehicle costs if that reduces bookkeeping.

• If you expect difficulty paying your bill, contact HMRC early to discuss a payment plan.

How an accountant can help

An accountant can prepare self-assessment returns, advise on what is allowable, set up Making Tax Digital compliant records, and help with cloud accounting tools so you see income and expenses in real time. They can also coach you on financial planning to spot savings and tax efficiencies. 

How the Autumn Budget 2025 Could Affect You and Ways to Prepare

The Autumn Budget 2025 is expected to be one of the most influential financial updates in years. Economic experts believe the Chancellor Rachel Reeves will introduce measures that could reshape taxes, savings, and public spending. Recent analysis in Autumn Budget 2025 Key Predictions for the UK Economy suggests that changes to income tax, capital gains, and inheritance thresholds may all be on the table.

While the official details will be confirmed on 26 November, individuals and businesses can take steps now to prepare. Planning early helps protect your finances and ensures you are ready for any new rules.

 

Review Your Financial Position

Understanding your current finances is the first step to preparing for change.

• Track income, savings, and spending to see where adjustments may be needed.

• Consider how potential income tax or capital gains tax changes could affect you.

• Review investment decisions before making large transactions.

Plan for Possible Inheritance Tax Adjustments

Predictions suggest more families could be drawn into inheritance tax if thresholds remain frozen.

• Update your will and review any existing estate plans.

• Look into how lifetime gifts might be affected under new rules.

• Explore available reliefs that can help reduce future tax exposure.

Reassess Your Pension and Retirement Strategy

Potential changes to pension tax relief and lump sum limits could affect long-term savings.

• Review current pension contributions and ensure they meet your future needs.

• Use existing reliefs while they are available.

• Consider the effect of possible adjustments on your retirement goals.

Businesses Should Prepare for Cost Pressures

Employers may face changes to National Insurance or business rates. Early preparation helps manage the impact.

• Review payroll structures and staffing budgets.

• Forecast how increased contributions could influence profits.

• Plan efficiency improvements to support cash flow.

Stay Alert to Changes in Allowances and Savings Rules

ISA limits and other savings allowances could be reduced, affecting how people invest.

• Monitor official updates as Budget day approaches.

• Explore new saving and investment opportunities.

• Be ready to adjust once new limits are confirmed.

Bottom Line

The Autumn Budget 2025 will play a major role in shaping the UK’s financial direction. Reviewing your finances now can help soften the impact of any tax or allowance changes. For a full overview of what the government may introduce, independent experts provide detailed insights in Autumn Budget 2025 Key Predictions for the UK Economy.

Why Contractors Across the UK Are Turning to Professional Bookkeepers

Running a construction business is demanding. Between managing projects, hiring subcontractors, and ordering materials, financial management often ends up at the bottom of the list. Yet, without proper bookkeeping for builders, even profitable projects can quickly lose control of cash flow.

Professional bookkeepers play a vital role in helping contractors, tradespeople, and construction firms keep their finances accurate and up to date. Let’s look at why outsourcing bookkeeping for contractors UK can save time, prevent costly mistakes, and strengthen business performance.

Why Builders Shouldn’t Handle Bookkeeping Alone

Many builders try to manage their accounts alongside day-to-day site work. It may seem manageable at first, but bookkeeping requires detailed record-keeping, accurate data entry, and consistent monitoring of income and expenses. Missed receipts or late invoice entries can distort your true profits.

A professional bookkeeper provides clear visibility into how much each project costs, how much you’re earning, and what cash you have available. They ensure every transaction—from material purchases to subcontractor payments—is correctly recorded and categorised. They also handle CIS Returns Filing to keep contractors compliant and free from HMRC penalties.

How Bookkeeping Supports Contractors in the UK

Good bookkeeping for contractors UK helps you stay financially organised, but it also makes your business more efficient. With accurate records, you can:

• Track payments from clients and ensure no invoice goes unpaid

• Plan ahead for taxes and operational expenses

• Maintain a healthy cash flow even during slower months

• Make confident decisions backed by reliable financial data

Outsourcing your bookkeeping means you can spend more time on site and less time worrying about spreadsheets or accounting software updates.

The Importance of Bookkeeping Help for Tradespeople

Tradespeople often face irregular income and high material costs, which makes bookkeeping tricky. Professional bookkeeping help for tradespeople ensures all expenses are accounted for, reducing the risk of under-reporting income or overpaying tax.

It also supports better financial forecasting. Knowing exactly how much each job earns after costs allows you to quote more accurately and improve profit margins over time.

The Role of Construction Accounting Services

Many firms combine bookkeeping with construction accounting services to gain a full financial overview. While bookkeepers handle daily records, accounting services focus on analysis and strategic advice. Together, they help construction businesses maintain compliance, optimise tax efficiency, and improve decision-making.

When both functions work hand in hand, builders get the benefit of precise record-keeping and clear insights into project profitability.

Why Outsourcing is the Smarter Choice

Hiring a professional bookkeeper is often more cost-effective than managing accounts in-house. Outsourcing eliminates the need for full-time staff, training costs, and accounting software licences. You gain access to experts who understand the construction industry’s unique financial challenges.

It also gives peace of mind knowing that your records are maintained accurately and deadlines are never missed.

Strong financial management is the backbone of a successful building business. Professional bookkeeping for builders isn’t just about keeping the books tidy—it’s about protecting your profits and giving you the confidence to grow.

Whether you’re a sole contractor or manage a team of tradespeople, outsourcing to specialists who understand the industry ensures your finances work as hard as you do.

Expert Help for Landlords with Self Assessment Returns

 

Filing a Self Assessment tax return can be a complex and time-consuming process, especially for landlords managing multiple properties and income streams. Understanding the UK tax rules for rental income, allowable expenses, and capital gains can be overwhelming without professional support. That’s why seeking expert help for Self Assessment returns is one of the best decisions landlords can make to stay compliant and optimise their tax position.

Understanding Self Assessment for Landlords

Self Assessment is the system HMRC uses to collect income tax from individuals and businesses whose tax is not automatically deducted. Landlords are required to complete a Self Assessment tax return if they earn rental income from a property in the UK or abroad. This applies whether you own a single buy-to-let property, a portfolio of rental homes, or holiday lets.

Through the Self Assessment process, landlords must declare their total rental income, deduct allowable expenses, and calculate the tax owed. Errors or omissions can lead to penalties, interest charges, or HMRC investigations, making accuracy essential.

Why Landlords Need Professional Accounting Help

Many landlords underestimate the complexities of property taxation. Expert accountants specialising in landlord Self Assessment returns can help you:

1.     Identify allowable expenses: Professionals ensure you claim all legitimate deductions such as mortgage interest, letting agent fees, insurance, repairs, and maintenance.

2.     Stay compliant with HMRC rules: Tax legislation changes frequently. Accountants stay updated with the latest rules to prevent costly mistakes.

3.     Save time and reduce stress: Experts handle all calculations, paperwork, and submissions, freeing you to focus on managing your properties.

4.     Maximise tax efficiency: Accountants can advise on ownership structures, capital allowances, and reliefs to minimise tax liabilities.

5.     Avoid penalties: With professional oversight, you’re less likely to miss deadlines or make filing errors that could trigger HMRC fines.

Common Challenges Landlords Face

Landlords often struggle with areas such as differentiating between capital and revenue expenses, understanding the impact of mortgage interest relief restrictions, and reporting jointly owned property income correctly. Additionally, if you sell a property, capital gains tax (CGT) reporting within 60 days can complicate your overall tax situation. Expert accountants can navigate these challenges efficiently and ensure all obligations are met accurately.

Benefits of Partnering with Property Tax Specialists

Working with property tax specialists provides landlords with peace of mind. These professionals offer tailored advice based on your unique circumstances whether you’re a first-time landlord or managing a large property portfolio. They can also assist with:

• Setting up digital record-keeping systems in line with Making Tax Digital (MTD) requirements.
• Planning for future property purchases or sales with tax efficiency in mind.
• Advising on inheritance tax and property ownership structures for long-term financial planning.

Filing your self assessment as a landlord doesn’t have to be stressful or confusing. With expert help, you can ensure compliance, reduce your tax bill, and gain a clear picture of your property finances. Professional landlord accountants not only handle your tax return but also provide proactive advice to help your property business thrive.

If you’re a landlord looking for reliable and expert support with your self assessment tax return, professional guidance can save you time, money, and unnecessary stress helping you stay on top of your finances year after year.