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 and Class 2 National Insurance. You may also need to pay Class 4 National Insurance depending on your income. QuickBooks’ simple sole trader accounting software can automatically work out how much you owe.

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 and submitting your tax returns in line with the most up to date Making Tax Digital regulations.

What is the best online accounting software for sole traders?

If you’re a sole trader, the best accounting software is one that allows you to manage your finances on the go, from any device. Cloud accounting software like QuickBooks Online allows you to send invoices, track expenses, calculate tax and see how your business is doing in real time - all in one place.

Does QuickBooks’ sole trader accounting software come with a free trial?

Yes, sole traders can try QuickBooks’ online accounting software for one month absolutely free or benefit from special discounts if you decide to buy now. Start your free trial now or see the latest pricing offers.

Can QuickBooks scale with me as my business grows?

QuickBooks Self Employed 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, sign up for QuickBooks Online . You can move up from Simple Start to Essentials and then on to QuickBooks Plus as your business and needs grow.

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.

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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 incomeYour grants (if you claimed through the Self-Employment Income Support Scheme)When you submit your 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 tax return and to show HMRC (if requested). These records must be accurate.This doesn’t have to be daunting. QuickBooks can help you keep a record of it all, reduce mistakes and increase accuracy with our VAT error checker–all in one place. Let us help you do your tax returns with confidence.

Passionate about your business, but not about accounting? QuickBooks' smart accounting software can help make your life easier. Save time and effort sending invoices, managing expenses and preparing your VAT returns—all in one place.

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Making Tax Digital ready - No commitment, cancel anytime - HMRC recognised

Join over 7.1 million customers worldwide already using QuickBooks

Whatever your sole trader business, our range of simple, smart accounting software solutions can help you take it to the next level. Once you've chosen your plan, there's no hidden fees or charges.

Preparing for Self Assessment as a sole trader? Let us help

We help sole traders like you to save time and hassle when it comes to preparing your taxes. Add your invoices and expenses into our app and QuickBooks can help you calculate and prepare your Self Assessment.

As Self Assessment is moving to MTD, we’re also working on a solution to help you stay on track with your MTD for Income Tax Self Assessment obligations*.

*This information is intended to outline our product direction, but represents no obligation and should not be relied on in making purchase decisions. Intuit reserves the right to discontinue or change features at any time for any reason in its sole absolute discretion.

Need help managing your income and expenses?

QuickBooks lets you import all of your bank accounts, credit card and PayPal transactions in real time, saving you time and hassle. This means you’ll be ready for income tax time, as we help to automate your income and expense tracking with our reconciliation tools.

Send invoices on the go

As a sole trader, your time is precious. We've made it easy to send invoices instantly on the spot. Use our handy templates to create branded invoices and get paid fast by adding PayPal’s ‘Pay now’ button.

You can also save time on admin by setting up recurring invoices that are payable by GoCardless Direct Debit. You’ll receive reminders when your invoices are due and have peace of mind that they’ve been opened and paid on time.

Claim your expenses with confidence

Driving out to jobs, stocking up on office supplies or taking clients out to lunch – whatever your life looks like as a sole trader, we make it simple to track expenses. Use the QuickBooks app to snap receipts and track mileage. We can also help you pull your bank data straight into your QuickBooks dashboard. This means you can save admin hours and focus on what really matters – your business.

Forecast your cash flow

We know that planning for the future is important. With instant and easy-to-understand insights at your fingertips, you can make better decisions.

Choose the right plan for your sole trader business

See our plans

Prepare for Self Assessment and Making Tax Digital for VAT

We know life as a sole trader gets busy. Our smart accounting software is here to simplify the process of organising your taxes, saving you time and hassle. We can help you prepare for Self Assessment, generate invoices, monitor expenses and help you track and file VAT returns in an MTD-compliant way. Thanks to QuickBooks, you can file your VAT returns to HMRC with confidence.

As Self Assessment is moving to MTD, we’re also working on a solution to help you stay on track with your MTD for Income Tax Self Assessment obligations*.

Get peace of mind with our VAT error checker

This innovative feature scans your VAT for common mistakes like duplicates, inconsistent VAT codes and missing transactions – all at the click of a button.

Send invoices on the go

Forecast your cash flow

We know that planning for the future is important. With instant and easy-to-understand insights at your fingertips, you can make better decisions.

Claim your expenses with confidence

Choose the right plan for your sole trader business

See our plans

Get up and running with free support

Check out our short video tutorials and jargon-free guides, or contact our award-winning team of experts. Live chat, screensharing and phone support are available free of charge.

New to QuickBooks? Once you've signed up, book a free 45 minute onboarding session with one of our experts. They'll walk you through key features and answer your questions - your welcome email has all the details

MTD for VAT
with QuickBooks

Discover how QuickBooks’ HMRC-recognised accounting software for sole traders can help you get MTD for VAT ready.

Learn more about MTD software

Don't feel outnumbered
by Self Assessment

With the right support, you can prepare your return with confidence.

Get started with Self Assessment

Save time
on invoicing

Invoice on the go with our customisable and professional invoice templates.

Discover our invoicing software

Take a look at these sole
trader blog posts

MAKING TAX DIGITAL

VAT portal closure dates confirmed

14 Sept 2022

MAKING TAX DIGITAL

Making Tax Digital for Income Tax: A useful guide

24 Mar 2022

STARTING YOUR OWN BUSINESS

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7 Apr 2021

Haven’t got all the answers you need? Check out these FAQs

You’re not required to use an accountant–you can simply file your own taxes. If you’re diligent about keeping track of your finances and invoices, filing your taxes 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
Your grants (if you claimed through the Self-Employment Income Support Scheme)

When you submit your 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 tax return and to show HMRC (if requested). These records must be accurate.

This doesn’t have to be daunting. QuickBooks can help you keep a record of it all, reduce mistakes and increase accuracy with our VAT error checker–all in one place. Let us help you do your tax returns with confidence.

The government's Making Tax Digital (MTD) initiative is aiming to modernise and shift the 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 Self Assessment (ITSA). Income from all relevant sources will count towards your qualifying income.

QuickBooks will be able to help you comply with all your ITSA 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 ITSA available in all entry level products*. This means that, whether you’re a QuickBooks Self Employed user, or a QuickBooks Online Simple Start, our ITSA functionality will soon be available to you.

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 90% discount on the current monthly price for QuickBooks Online Simple Start or 90% discount on the current monthly price for QuickBooks Online Essentials or 90% discount on the current monthly price for QuickBooks Online Plus or 90% 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.

Receive a 90% discount on the current monthly subscription price for the first 6 months of service starting from the date you subscribe for the service. In order to obtain the discount you need to select the Buy Now option and will not receive the free one month trial offer. After the first 6 months, your account will be charged on a monthly basis at the then current price until you cancel. The above discount offer is available only to new QuickBooks Self-Employed customers and cannot be combined with any other QuickBooks Online offers.

Receive 90% off the current monthly subscription price for QuickBooks Standard 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 3 August 2023.

Receive 90% 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 Self-Employed 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 Self-Employed and 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 8am to 7pm.
QuickBooks Online Live Messaging – Monday to Friday 8am to 12am, Saturday and Sunday 8am to 6pm.
QuickBooks Self-Employed Live Messaging – Monday to Friday 8am to 12am, Saturday and Sunday 8am to 6pm.

'Save around 8 hours a month' based on respondents new to QuickBooks; Intuit survey June 2016.

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Accounting software for sole traders

Join over 7.1 million customers worldwide already using QuickBooks

Preparing for Self Assessment as a sole trader? Let us help

Need help managing your income and expenses?

Send invoices on the go

Claim your expenses with confidence

Forecast your cash flow

Choose the right plan for your sole trader business

Prepare for Self Assessment and Making Tax Digital for VAT

Get peace of mind with our VAT error checker

Send invoices on the go

Forecast your cash flow

Claim your expenses with confidence

Choose the right plan for your sole trader business

Get up and running with free support

MTD for VATwith QuickBooks

Don't feel outnumberedby Self Assessment

Save timeon invoicing

Take a look at these soletrader blog posts

MAKING TAX DIGITAL

VAT portal closure dates confirmed

MAKING TAX DIGITAL

Making Tax Digital for Income Tax: A useful guide

STARTING YOUR OWN BUSINESS

How to develop your small business idea

Haven’t got all the answers you need? Check out these FAQs

What is a sole trader?

How do I register as a sole trader?

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

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

What is the best online accounting software for sole traders?

Does QuickBooks’ sole trader accounting software come with a free trial?

Can QuickBooks scale with me as my business grows?

Can I do my own accounting as a sole trader?

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

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

What is MTD for Income Tax and Self Assessment (ITSA)?

How will QuickBooks help me through MTD for ITSA?

How can we help?

Talk to sales: 0808 168 9533

Get product support

MTD for VAT
with QuickBooks

Don't feel outnumbered
by Self Assessment

Save time
on invoicing

Take a look at these sole
trader blog posts