What is a sole trader?

As a sole trader, you’re the only one who runs and owns your business. This means that you’re entitled to keep all the profits it makes after tax has been paid, but you’re also liable for all losses.

How do I register as a sole trader?

You can register as a sole trader with HMRC online. You’ll need to provide some personal and business information, like your National Insurance Number. When you register as a sole trader, you’ll have access to online services from HMRC. If you’re registered for VAT you can easily connect your HMRC account to QuickBooks to submit your VAT returns online.

What type of tax do I need to pay as a sole trader?

You’ll need to pay Self Assessment Income Tax. Depending on your profits you will need to pay Class 4 National Insurance. From 6 April 2024 Class 2 National Insurance are treated as being paid, but you are still able to pay voluntary contributions if you want to avoid gaps in your record.

What are the basic accounting software features I need as a sole trader?

You’ll want accounting software that can help with basic tasks like tracking time, sending invoices, managing expenses, preparing for Self Assessment and submitting your VAT returns in line with the most up to date Making Tax Digital regulations.

Would having an accountant be helpful for me as a sole trader?

An accountant or bookkeeper can help support the success of your business so we’d advise working with one if you can. If you don't already have one, search QuickBooks ProAdvisor to find a certified accountant or bookkeeper who’s eager to assist you with using QuickBooks. All QuickBooks Online plans enable you to collaborate with your accountant or bookkeeper directly in your books.

What is MTD for Income Tax?

The government's Making Tax Digital (MTD) initiative is aiming to modernise and shift the Income Tax system online. From April 2026, both self-employed business owners and landlords with an annual qualifying income of £50,000, or over, and £30,000 or over from April 2027, will first be impacted by MTD for Income Tax. Income from all relevant sources will count towards your qualifying income.

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Accounting software for sole traders

Q: What do I need to keep track of as a sole trader?

You need to keep a record of the following:All sales and incomeAll business expensesVAT records (if you’re registered for VAT)PAYE records (if you employ people)Records about your personal incomeWhen you submit your Self Assessment tax return, you do not need to send in your records. But, you do need to keep them so you can calculate your profit or loss for your Self Assessment return and to show HMRC (if requested). These records must be accurate.

Never feel outnumbered with QuickBooks’ simple, smart accounting software solutions for sole traders. Save time and effort sending invoices, managing expenses and preparing your VAT returns–all in one place.

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Sole Trader

For sole traders and single property owner landlords not registered for VAT, who need to prepare Self Assessment.

£10

£5/mo

for 6 months, then £10/mo

(All prices +VAT @20%)

Simple Start

For sole traders or small businesses managing VAT, Income Tax and preparing Self Assessment.

£16

£8/mo

for 6 months, then £16/mo

(All prices +VAT @20%)

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Our award-winning UK-based experts are here for you, 7 days a week with free support via phone, live chat and screen sharing.*

New to QuickBooks? Book a free onboarding session with one of our product experts.**

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* Phone support available 8.00am - 7pm Monday - Friday or message them live 8.00am - 10.00pm Monday to Friday, 8.00am - 6.00pm Saturday & Sunday
**Onboarding session not available for the QuickBooks Sole Trader plan

Sole trader blog

Discover the QuickBooks UK Blog covering all aspects of running a sole trader business.

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How to accept mobile invoices: a guide for small businesses

Bill your clients, track your invoices and monitor payments using an easy-to-manage system that does most of the work for you.

The Self Assessment Tax Return for Beginners

Your first time can be daunting. How are you meant to know what you’re doing? What if you make a mistake?

Sole trader questions. Answered.

Whether you want to know more about setting up as a sole trader, your tax obligations or the accounting software that’s right for you—you’ll find answers here.

QuickBooks Sole Trader is ideal for sole traders who aren't (and aren't likely to be) registered for VAT. If you think you're going to start paying VAT, or may become a limited company, you will need a different QuickBooks plan.
QuickBooks Simple Start, Essentials, Plus and Advanced are all suitable for VAT registered businesses and limited companies. You can move to a different QuickBooks plan as your business and needs grow.

You’re not required to use an accountant–you can simply file your own Self Assessment return. If you’re diligent about keeping track of your finances and invoices, filing your Self Assessment on your own doesn’t have to be daunting–especially with the help of accounting software like QuickBooks.
QuickBooks can help you stay on top of your books as well as send invoices, track expenses, prepare self assessment, calculate VAT and see how your business is doing in real time–all in one place.

You need to keep a record of the following:

All sales and income
All business expenses
VAT records (if you’re registered for VAT)
PAYE records (if you employ people)
Records about your personal income

When you submit your Self Assessment tax return, you do not need to send in your records. But, you do need to keep them so you can calculate your profit or loss for your Self Assessment return and to show HMRC (if requested). These records must be accurate.

QuickBooks will be able to help you comply with all your MTD obligations. Whether you need to send your quarterly updates, finalise your annual income through the End of Period Statement or submit your Final Self Assessment Declaration, you’ll be able to do it all with the help of QuickBooks.
We plan to make our MTD for Income Tax available in all products*. This means that, whichever QuickBooks plan you are on, MTD Income Tax functionality will soon be available to you.

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"Great product and helpful staff. I really like using QuickBooks. There are many brilliant time savings and help to improve accuracy when bookkeeping."

Beth Jenkins, Trustpilot

"Thanks for resolving our query on validation codes."

Dan McGovern, Trustpilot

"So pleasant and cheerful on the phone that it made everything easy to fix. It makes talking on the phone instead of voiceless emails a sheer delight. Thank you."

Heather Hill, Trustpilot

"Easy to use and customer service is fantastic."

Pankaj, Trustpilot

"Sheryl was very helpful and went out of her way to email me links to deal with common vat issues."

Yogapriya Nithianandan, Trustpilot

"Excellent, easy to use product! Easy accessible customer service if you need."

Jersey, Trustpilot

"Excellent knowledge and understanding of the problem and couldn't be more helpful."

Frederick Thomas, Trustpilot

"One quick phone call and all done, the lady was prompt, polite and very cheerful, a breath of fresh air in this current global pandemic."

Barry Wilson, Trustpilot

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John McDonagh, Trustpilot

"Brilliant system and great customer service."

Rachel Keeley, Trustpilot

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1 End of year functionality for single property owner landlords is available in the QuickBooks Sole Trader plan.
2 VAT error checker and VAT submission directly to HMRC functionality are not available in the QuickBooks Sole Trader plan.
3 Both QuickBooks Simple Start and Sole Trader are suitable for CIS subcontractors. CIS contractor functionality is not available in our QuickBooks Sole Trader plan.
4 AI sorting of business and personal expenses is available in the QuickBooks Sole Trader plan only.
5 Pay enabled invoices are not available in the QuickBooks Sole Trader plan.
6 Goal setting is available in the QuickBooks Sole Trader plan only.
7 App integrations are not available in the QuickBooks Sole Trader plan.

QuickBooks Making Tax Digital for VAT software is available to all QuickBooks Simple Start, Essential, Plus and Advanced subscribers. Use of QuickBooks MTD for VAT software and bridging software must be aligned with HMRC's eligibility requirements and includes additional setup between the small business and HMRC.

QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. QuickBooks Bridging Software supports Standard and Cash schemes. Businesses whose home currency is not GBP are currently not supported.

Receive a 50% discount on the current monthly price for QuickBooks Online Sole Trader or 50% discount on the current monthly price for QuickBooks Online Essentials or 50% discount on the current monthly price for QuickBooks Online Essentials or 50% discount on the current monthly price for QuickBooks Online Plus or 50% discount on the current monthly price for QuickBooks Online Advanced for the first 6 months of service, starting from date of enrolment, followed by the then-current monthly price. Your account will automatically be charged on a monthly basis until you cancel. You must select the Buy Now option and you will not be eligible for a 30-day free trial. Offer valid for new QuickBooks Online customers only. No limit on the number of subscriptions ordered. You can cancel at any time by calling 0808 168 9533. Discount cannot be combined with any other QuickBooks Online offers. Terms, conditions, features, pricing, service and support are subject to change without notice. All prices shown exclude VAT.

Enjoy 50% off for 12 months on the current fees when you pay for your QuickBooks Online subscription on an annual, upfront basis. If you cancel your QuickBooks Online subscription within the pre-paid 12-month period, you will not be eligible for a refund, but will retain full access to your QuickBooks Online subscription for the remainder of the 12-month period. Alternatively if you wish to receive a refund then you need to cancel by calling us on 0808 234 5337 within the pre-paid 12 month period and we will provide a pro-rata refund and deactivate your account. Unless cancelled by you prior, your annual subscription will auto-renew on the 12 month anniversary of your sign-up date using the billing details you have given us. Discounts, prices, terms and conditions are subject to change.

Receive 50% off the current monthly subscription price for QuickBooks Core or QuickBooks Advanced Payroll for the first 6 months of service, starting from the date you subscribe to the service, followed by the then-current monthly price. Your account will automatically be charged on a monthly basis for the subscription fee and for all pay runs processed in the previous month, until you cancel. You must select the Buy Now option, and you will not be eligible for a 30-day free trial. Offer valid for new QuickBooks Online customers only. No limit on the number of subscriptions ordered. You can cancel at any time by calling 0808 168 9533. Discount cannot be combined with any other QuickBooks Online offers. Terms, conditions, features, pricing, service and support are subject to change without notice. All prices shown exclude VAT.

Discount valid until the 19 December 2024.

Receive 50% off the current monthly subscription price for QuickBooks Advanced for the first 6 months of service, starting from the date of enrolment, followed by the then monthly price. Your account will automatically be charged on a monthly basis for the subscription fee and for all pay runs processed in the previous month, until you cancel. You must select the Buy Now option and will not receive a one month trial. Offer valid for new QuickBooks Online customers only. No limit on the number of subscriptions ordered. You can cancel at any time by calling 0808 239 9692. Discount cannot be combined with any other QuickBooks Online offers. Terms, conditions, features, pricing, service and support are subject to change without notice. All prices shown exclude VAT.

QuickBooks Advanced Payroll allows you to automatically submit information to the following pension providers: NEST, The Peoples Pension, Smart Pensions, Aviva and NOW:Pensions

Free onboarding sessions are offered to all newly subscribed customers and trialists, excluding customers on our QuickBooks Sole Trader product. We offer 1 session per customer and reserve the right to remove this offering at anytime. Invitations are sent via email and in-product messaging once signup has been completed. A link will be included in the message for you to book a session using our calendar tool.

Mileage tracking is available on QuickBooks Online on iOS and Android only.

These terms apply to QuickBooks UK customers only. Bulk-pricing discount offer is valid only if you are signing up for more than one QuickBooks Online subscription with each order. View terms and conditions for multiple accounts pricing here. To inquire further about the bulk-pricing discount offer, please call 0808 168 9533

QuickBooks UK support hours:

QuickBooks Online Phone – Monday to Friday 8.00 AM to 7.00 PM
QuickBooks Online Live Messaging – Monday to Friday 8.00 AM to 10.00 PM, Saturday and Sunday 8.00 AM to 6.00 PM
QuickBooks Self-Employed Live Messaging – Monday to Friday 8.00 AM to 10.00 PM, Saturday and Sunday 8.00 AM to 6.00 PM

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Accounting software for sole traders

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