If you’re a sole trader, you already know the drill—tax season creeps up, and suddenly you’re buried in receipts, invoices, and stress. But here’s the truth: tax prep isn’t just a January problem. The best way to make tax time a breeze is to stay on top of it all year round.
Start strong in April, build good habits, and you’ll avoid the last-minute panic later. Here are six practical tips to keep your tax game tight from day one of the new tax year.
1. Get Organised Early (Like, Now)
The new tax year starts in April—don’t wait until Christmas to get your house in order. Set up your systems now. Whether it’s a spreadsheet, a mobile app, or cloud software, pick a method that works for you and stick with it.
Buzz Tip: Choose something simple and easy to update on the go. If it’s too complicated, you won’t use it.
2. Track Every Penny—As You Go
The easiest way to lose money (and miss expenses) is to log everything months after it happened. Instead, get into the habit of recording income and expenses as they happen. It takes two minutes, and it’ll save you hours later.
- Log mileage after each job
- Snap photos of receipts as soon as you get them
- Categorise spending weekly, not annually
Make it part of your routine and it’ll become second nature.
3. Separate Business and Personal Finances
Still using your personal bank account for business? It’s a recipe for confusion. Set up a separate account for your business, even if you’re not legally required to.
This makes tracking income, expenses, and profits so much easier—and shows HMRC you mean business.
Bonus: It helps you see what you’re actually earning, not just what’s left after a few nights at the pub.
4. Keep an Eye on Your Tax Pot
Set aside a percentage of every payment you receive—right from the start. We recommend 20-30%, depending on your earnings. Put it in a separate account and don’t touch it.
When your tax bill comes in, you’ll be ready. No panic. No scrambling. Just sorted.
Buzz Tip: Automate the transfer if you can. One less thing to remember.
5. Know What You Can (and Can’t) Claim
One of the best ways to lower your tax bill is to claim all your allowable expenses. But you’ve got to know what’s eligible.
Common claimable expenses for sole traders include:
- Tools and equipment
- Travel and mileage
- Mobile phone (business use)
- Marketing and advertising
- Office supplies
Not sure about something? Ask. Better to check than miss out—or claim something you shouldn’t.
6. Don’t Bury Your Head—Ask for Help Early
Got a question about expenses, income, or tax code changes? Don’t leave it until January. Ask early. A decent accountant will help you stay on track throughout the year—not just during tax season.
At Buzz, we’re all about no-nonsense support that helps you stay ahead. We don’t do jargon, and we’re always up for a chat when you need us.
Make This Your Easiest Tax Year Yet
Tax doesn’t have to be stressful. With a few simple habits, you can stay in control, keep things tidy, and avoid the mad January dash.
At Buzz Accounting, we work with sole traders across the UK to keep their books in order all year long. From setting up systems to claiming expenses and filing your return—we’ve got your back.
👉 Ready to stop stressing about tax? Book a call today and let’s get you set up for a smoother, calmer, more profitable year.