Tax Savings and Allowances for Sole Traders
Paying the right amount of tax isn’t just about filling out forms or meeting deadlines. You need to understand exactly what you’re entitled to claim, and honestly, some forward planning can make a big difference. Our self employed accountants serve as your advisors throughout the year to help you hold on to more of your earnings and ensure you’re always following UK tax regulations.
Allowable Business Expenses
Many sole traders lose out because they overlook claims they’re eligible for. Common examples include:
- Office supplies and software
- Travel and mileage for business trips
- Professional subscriptions and training
- Marketing and website costs
- Work related phone and internet bills
GoForma isn’t just around at tax season. We stay in touch with you all year, reviewing your circumstances and offering practical guidance as things change. That way, you can spot tax-saving opportunities early, not just at the last minute. This keeps your cash flow in better shape, helps you avoid errors, and makes sure you always know where your finances stand.
Personal Allowance
In the UK, everyone has a personal allowance—the amount you can earn before income tax kicks in. By understanding how this works, you can decide how much to withdraw from your business without facing an unexpected tax charge.
National Insurance
As a sole trader, you’re responsible for paying Class 2 and Class 4 National Insurance based on your profits. Make sure you know the current thresholds and rates so you’re prepared when it’s time to pay.
Pension Contributions
Contributing to a pension not only helps secure your future but also reduces your taxable income right away. Even modest, regular payments can have a positive impact on your tax bill and your long-term finances.
Home Office Claims
If you work from home, you can claim a proportion of your household costs—such as electricity, heating, and internet—as business expenses. Be sure to calculate these amounts accurately to follow the rules and maximise your savings.
Get MTD for Income Tax Ready for April 2026
GoForma is prepared for Making Tax Digital for Income Tax, which is coming into the effect from April 2026 for sole traders and landlords with qualifying income above £50,000 per year. This change means you will have to use MTD compatible software to keep digital records, send quarterly updates to HMRC, and submit their final tax return
GoForma is fully prepared to guide our clients through digital record keeping, quarterly updates, and accurate submissions well before the deadline arrives. This early preparation means no last minute stress, no rushed setup, and complete confidence that your tax records meet the new digital requirements.
Your Sole Trader Accounting, Sorted
Handling your own accounts can be a serious drain on your time and energy. Why not leave the number crunching to us at GoForma? We’re more than just online accountants for sole traders; we actually understand the rollercoaster of running your own business as a sole trader. Book a free consultation today and see for yourself why so many business owners trust us to reduce their tax bills and keep things running like clockwork. If you’re after reliable, stress-free accounting, GoForma’s got your back.
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