Guidance
Tax resources
Plain-English guidance on key dates, allowable expenses, and business structures. For advice specific to your situation, please get in touch.
Key tax deadlines
The dates every self-employed person and business owner should know.
31 January
Self-assessment tax return online filing and payment deadline
31 October
Self-assessment paper filing deadline
5 April
End of the UK tax year
6 April
Start of the new UK tax year
Quarterly
VAT return deadlines vary by VAT period — contact us for yours
What expenses can sole traders claim?
HMRC allows sole traders to deduct allowable business expenses from their income before calculating the tax due. Common allowable expenses include:
- ✓Office costs — a proportion of household bills if working from home
- ✓Travel expenses (not commuting — only travel for business purposes)
- ✓Clothing — uniforms or protective gear only, not everyday work clothes
- ✓Staff costs, including wages and subcontractor costs
- ✓Marketing and advertising
- ✓Professional fees, including accountancy fees
- ✓Stock and materials used in the business
This list is not exhaustive. What you can claim depends on your specific trade and circumstances — speak to us for advice tailored to your business.
Sole trader vs limited company
One of the most common questions we get from growing businesses.
Sole trader
As a sole trader you are self-employed and personally responsible for your business debts. The structure is simple to set up and has fewer administrative requirements — you file a self-assessment tax return each year and pay Income Tax and National Insurance on your profits.
This is often the right starting point and works well for many sole traders and freelancers throughout their careers.
Limited company
As a limited company, the business is a separate legal entity, which limits your personal liability. Limited companies generally become more tax-efficient once profits exceed approximately £30,000–£40,000 per year, though the right structure depends on individual circumstances.
There are more administrative requirements — annual accounts, corporation tax return, and confirmation statement — but these can all be handled by Pinnacle at a fixed fee.
Not sure which is right for you? The answer depends on your level of profits, your risk appetite, and your plans for the business. We offer a free 30-minute consultation to help you think it through.
Disclaimer: This information is for general guidance only and does not constitute financial or tax advice. Please contact us for advice specific to your situation.