Running your own business means wearing every hat — including the tax one. A sole traders tax return is your annual Self Assessment filing that reports all business income, allowable expenses, and the tax you owe HMRC. Unlike employees, nothing is deducted automatically for you. Every penny of responsibility sits with you.
The good news? Legitimate expenses — tools, mileage, phone bills, even part of your home utilities if you work from home — can reduce your taxable profit considerably. Most sole traders underestimate how much they can claim.
