Self Assessment tips for sole traders (UK)

Self Assessment doesn’t have to be a once-a-year headache. For most sole traders, the stress comes from the same three things:

• missing information
• messy records
• leaving it until January

Here are some practical, plain-English habits that make your return quicker (and usually more accurate).

1) Keep a simple “money in / money out” rhythm

You don’t need complicated reporting — you need consistency.

A good baseline is:

• capture sales/invoices weekly
• upload or file receipts as you go
• reconcile the bank monthly

If you’re always catching up, the numbers never feel trustworthy.

2) Separate business spending (as much as you can)

If everything runs through one personal account, your bookkeeping becomes detective work.

Two easy improvements:

• use a dedicated business bank account (or at least a separate card)
• label transactions while they’re fresh (most apps let you add notes)

3) Track the “boring” things that save time later

These small details stop you getting stuck:

• customer refunds and credit notes
• mileage logs (if you claim mileage)
• home working notes (if relevant)
• small cash expenses
• subscription renewals (software, tools, memberships)

4) Keep a tidy list of expenses categories

You don’t need to become an expert in every rule — but having a repeatable set of categories makes the return smoother.

Examples people often use:

• materials / stock
• subcontractors
• travel (and keep it separate from meals)
• phone/internet
• tools and equipment
• software
• insurance

If you’re unsure whether something is allowable, don’t guess. Make a note and ask.

5) Put money aside for tax (little and often)

Many sole traders find it helpful to move a percentage of income to a separate “tax pot” account.

It’s not about picking a perfect percentage — it’s about reducing surprises and keeping cashflow calmer.

6) Don’t wait until January

January is when HMRC deadlines become urgent and everyone’s trying to do the same thing at once.

A calmer approach:

• do a mid-year check-in (so you can spot issues early)
• do a “year-end tidy” soon after 5 April
• aim to finalise numbers well before the winter rush

7) Keep your records safe (and easy to find)

A simple folder structure works wonders:

• one folder per tax year
• subfolders for income, expenses, bank, and “questions”
• keep copies of key invoices and statements

If you use software, make sure you can quickly export reports and back up data.

Disclaimer

This article is general information, not tax advice. What you can claim and what you need to report depends on your circumstances, and HMRC rules can change. If you’re unsure about a specific expense or your filing position, check the latest HMRC guidance or get tailored advice.

If you’d like a simple checklist and a repeatable monthly process, ClearMethods can help you get your Self Assessment organised without the jargon.