Guides

Sole Trader? Start Here — Filing, Tax & Next Steps

Published 18 Jul 2026 · Updated 18 Jul 2026

If you're a sole trader — trading as yourself, not through a registered company — start here. A sole trader reports to one place, HMRC, through a single Self Assessment return each year, and files nothing at Companies House. This page points you to the guides that actually apply to you, grouped by what you're trying to work out.

Making Tax Digital may change how you do that reporting. It is being phased in by combined gross self-employment and property income from April 2026. If your income is near the thresholds, check Making Tax Digital for Income Tax before treating Self Assessment as a once-a-year job.

Three things bring most people to these pages: working out what a sole trader has to file, checking how you differ from a limited company, and weighing up whether to incorporate. Pick the one that fits.

What does a sole trader actually file?

Your reporting is with HMRC, not Companies House. Once you earn more than £1,000 of gross trading income in a tax year, you register for Self Assessment and then file one return a year — online by 31 January. There are no statutory annual accounts to file, no confirmation statement and no Company Tax Return. Start with:

• Sole trader accounts — what you actually have to do, the deadlines and record-keeping.
• Self Assessment tax return — how the sole trader's return works: the deadlines, payments on account, and how to file.
• Making Tax Digital for Income Tax — whether the new digital-filing rules apply to you yet, and what changes if they do.
• Self Assessment vs the Company Tax Return — the two returns get mixed up constantly; this untangles which one is yours.

Am I a sole trader or a limited company?

Plenty of people trade for months without being certain. The test is simple: you're a limited company only if a company was registered for you at Companies House. If nothing was ever registered, you're a sole trader. These two settle it:

• Sole trader vs limited company — the real difference, what each one files, and which is better for your situation.
• Are sole traders registered at Companies House? — the short answer is no, and this covers why, and what you have instead of a company number.

Thinking about becoming a limited company?

Incorporating is a genuine decision, not an upgrade everyone should take. Whether it's worth it depends on your profit level, how you pay yourself, and how much liability and admin you're comfortable with.

• Sole trader to limited company — when switching makes sense, the trade-offs, and how the change actually works.

It's a one-off decision worth getting right the first time. If you'd rather talk it through with someone before you move, speak to an accountant →

Frequently asked questions

Do sole traders file accounts with Companies House? No. Companies House is the register of limited companies. A sole trader keeps business records and sends a Self Assessment tax return to HMRC instead — sole trader accounts covers what that involves.

When do I need to register as a sole trader? You register for Self Assessment once you earn more than £1,000 of gross trading income in a tax year (that's your takings before expenses). Sole trader accounts has the registration deadline and the steps.

Is being a sole trader the same as being self-employed? In everyday terms, yes — a sole trader is a self-employed person running an unincorporated business in their own name. The label that matters for filing is whether a limited company has been registered; if not, you report through Self Assessment.

Should I become a limited company? Sometimes it pays, sometimes it doesn't — it turns on your profit level, how you take money out, and how much admin you want. Sole trader to limited company walks through the trade-offs honestly.

Rather have someone keep all of this on track for you? Speak to an accountant →