Question 1

Do I need to file a Self Assessment tax return?

Accepted Answer

If you are self-employed as a sole trader, you will usually need to file a Self Assessment tax return if your gross trading income is more than £1,000 in the tax year.

You may also need to file for other reasons, such as receiving property income or other untaxed income. If you are unsure, HMRC has an online checker to help you decide.

Question 2

Can I file my Self Assessment tax return early?

Accepted Answer

Yes. You can file your tax return as soon as the tax year has ended, provided you have all the information you need.

Filing early gives you more time to plan ahead for any tax due and sort out problems before the deadline. It does not mean you have to pay the tax early — the normal payment deadline still applies.

Question 3

Does Making Tax Digital replace Self Assessment?

Accepted Answer

No. Making Tax Digital for Income Tax changes how some sole traders and landlords keep records and report information to HMRC, but it does not remove the need for a tax return.

If MTD applies to you, you must keep digital records, send quarterly updates and then submit your tax return using compatible software after the end of the tax year.

Question 4

Can I use Excel for Self Assessment and MTD?

Accepted Answer

Yes. You can use Excel to keep your bookkeeping records and calculate the figures needed for Self Assessment.

If Making Tax Digital for Income Tax applies to you, you must use the spreadsheet with compatible bridging software to send quarterly updates and submit your tax return to HMRC. Our free MTD spreadsheet template is designed for sole traders who want to continue using Excel.

Question 5

Do I need an accountant to complete my Self Assessment tax return?

Accepted Answer

No. You can complete and submit your own tax return if you are confident that your records are complete and you understand which income, expenses and reliefs to include.

An accountant may help if your tax affairs are more complicated, you have several sources of income, capital gains or property income, or you are unsure what you can claim.

self employed

Tax Returns for Self-Employed

Making Tax Digital for Income Tax (MTD ITSA) Explained

Self Assessment Tax Return Explained (UK Guide for the Self-Employed & Landlords)

Small Business Taxation Accounting (UK) – A Simple Guide

Understanding Self-Employed Tax: A Clear Guide for the Self-Employed

11 Benefits of Self-Employment

Proof of Income for Self-Employed

Understanding Your Side Hustle Tax UK: Navigating Extra Income Tax

Record Keeping for Self-Employed

Sole Trader Advantages and Disadvantages

How to Budget If You Are Self-Employed – 7 Top Budgeting Tips!