Employees with a company car available for their private use pay tax on the benefit. The amount that is charged to tax is a percentage of the list price of the car and any optional accessories, as adjusted to reflect any capital contributions made by the employee up to £5,000. The percentage, which is known as the ‘appropriate percentage’, depends on the level of the car’s CO2 emissions. A supplement applies to diesel cars that fail to meet emissions standards. The charge is adjusted to reflect certain periods during the tax year when the car was not available to the employee for their private use, and also any contributions made by the employee in respect of their private use of the car.

Changes applying from 2025/26

For the 2025/26 tax year, having a company car will become slightly more expensive. The appropriate percentages are increased by one percentage point up to the maximum charge of 37%. This means that an employee with an electric car will now be taxed on 3% of the list price of the car and optional accessories, compared to a charge of 2% for 2024/25. At the other end of the scale, the maximum charge of 37% will apply to cars with CO2 emissions of 155g/km and above.

This change will mean that an employee with a company car with a list price of £30,000 paying tax at the higher rate will pay £120 more in tax on their company car in 2025/26 than in 2024/25. Employers will also pay more in Class 1A National Insurance, both as a result of the increase in the appropriate percentage and also as a result of the increase in the Class 1A charge from 13.8% to 15%.

Looking ahead – 2026/27 and beyond

With the number of company car drivers choosing electric company cars increasing, the Government are reducing the tax breaks in order to maintain their revenue stream. For 2026/27, the appropriate percentages applying to cars with CO2 emissions of 74g/km or less are increased by one percentage point, while the appropriate percentages for cars with CO2 emissions of 75g/km and above are maintained at their 2025/26 level. It is a similar story for 2027/28 – the appropriate percentages for cars with CO2 emissions of 69g/km and below are increased by one percentage point, with the appropriate percentages for cars with CO2 emissions of 70g/km and above remaining unchanged.

There are further changes to come in both 2028/29 and 2029/30. In each of those years, the appropriate percentage for zero emission cars will increase by two percentage points. This means that for 2028/29, electric company car drivers will be taxed on 7% of the list price of their car and optional accessories. For 2029/30, this will increase to 9%.

From 2028/29, the amount charged to tax in respect of cars in the 1 to 50g/km band will no longer depend on the car’s electric range. Instead, the appropriate percentage for cars in this band will be set at 18% in 2028/29 and at 19% in 2029/30. For cars with the greatest electric range (more than 130 miles), this is a significant hike – from 5% in 2027/28 to 18% in 2028/29.

As far as other cars are concerned, the appropriate percentages will increase by one percentage point in both 2028/29 and in 2029/30. The maximum charge will also rise – to 38% in 2028/29 and to 39% in 2029/30.

Plan ahead

Drivers typically have a company car for three or four years. When changing their company car, employees should not only consider the current rates, but also those applying in future tax years. For electric and low emission cars in particular, significant tax hikes are on the horizon.

Putting money into a registered pension scheme can be tax efficient. Individuals can make contributions in their own right, or even for someone else, and employers can make contributions on their employees’ behalf (and indeed must do so under auto-enrolment). Tax relief is available on contributions up to certain limits.

Auto-enrolment

Under auto-enrolment, employers must enrol eligible employees into a registered pension scheme and make contributions on their behalf. An eligible employee is one who is between the ages of 22 and state pension age and who earns at least £10,000 a year. The total contribution to the scheme must be 8% of qualifying earnings, of which the employer must contribute at least 3%. While employees can choose to opt out of auto-enrolment, they will lose the valuable employer contributions, and as such, this is not a decision that should be made lightly.

Contributions to a personal pension scheme

Individuals can make tax-relieved contributions to a relevant pension scheme up to the lower of 100% of their earnings (or £3,600 if higher) and their available annual allowance. Tax relief is given at the contributor’s marginal rate of tax.

For 2025/26, the annual allowance is set at £60,000. However, where both threshold income (broadly income excluding pension contributions) exceeds £200,000 and adjusted net income (which includes pension contributions) exceeds £260,000, the annual allowance is reduced by £1 for every £2 by which adjusted net income exceeds £260,000 until the allowance is reduced to the minimum amount of £10,000.

Where the annual allowance is not used in full, it can be carried forward for up to three years. However, the current year’s allowance must be used before utilising those from earlier years (with allowances from earlier years being used in chronological order).

The annual allowance was set at £60,000 for 2024/25 and 2023/24 For 2022/23 it was set at £40,000 (with abatement applying where threshold income was more than £200,000 and adjusted net income was more than £240,000 until the minimum allowance of £4,000 is reached).

Individuals who have not made contributions in 2022/23 and later tax years can make tax-relieved contributions of up to £220,000 in 2025/26, earnings permitting. However, it should be remembered that high earners may have a reduced annual allowance as abatement may apply.

There is no longer any cap on lifetime tax-relieved pension savings following the removal of the former lifetime allowance. However, the maximum tax-free lump sum is capped at £268,275 where this is less than 25% of the value of the pension pot when accessed.

Once an individual has accessed their pension savings (currently an option on reaching the age of 55), they are only entitled to a lower annual allowance – the money purchase annual allowance – thereafter. For 2025/26 this is set at £10,000.

Personal and family companies

Directors of personal and family companies often only take a small salary equal to the personal allowance of £12,570 and withdraw further profits as dividends. This can limit the tax-relieved pension contributions that they are able to make, as dividends do not count as earnings, capping potential pension contributions at £12,570 a year. This problem can be overcome if the company makes employer contributions on their behalf, as while employer contributions count towards the annual allowance, they are not limited to 100% of the employee’s earnings. Making pension contributions to the director’s pension scheme can be a tax-effective way to withdraw profits from the company. The contributions are also deductible when calculating the company’s profits for corporation tax purposes.

Last October Chancellor Rachel Reeves announced some far-reaching National Insurance changes which will affect employers from April 2025. She also confirmed the rates applying to employees and to the self-employed.

Employers

The 2025/26 tax year starts on 6 April 2025. From that date, the secondary threshold (which is the point at which employers start paying secondary contributions on employees’ earnings unless one of the higher secondary thresholds applies) falls to £96 per week (£417 per month; £5,000 per year). From the same date, the rate at which employers pay secondary contributions is increased from 13.8% to 15%. The fall in the threshold will mean employers may now need to pay secondary contributions for the first time on the earnings of some part-time workers who previously were below the threshold.

There is some help at hand in the form of an increase in the Employment Allowance, which rises from £5,000 to £10,500. From 2025/26, it will be available to larger employers as the former condition that the secondary Class 1 NIC bill in the previous tax year must not exceed £100,000 in order to benefit from the Employment Allowance is lifted. However, personal companies in which the sole employee is also a director remain ineligible.

The rise in the Employment Allowance will mean that smaller employers may find their secondary National Insurance bill falls, despite the cut in the secondary threshold and the increase in the rate. However, at the other end of the spectrum, large employers will face significant hikes in their National Insurance bill.

There are no changes to the upper secondary thresholds. The upper secondary threshold for under 21s, the apprentice upper secondary threshold and the veterans’ upper secondary threshold remain at £967 per week (£4,189 per month; £50,270 per year). Employers looking to mitigate the impact of the changes may wish to take on more workers falling within these categories. The thresholds applying to new employees in Freeports and Investment Zones are also unchanged at £481 per week (£2,083 per month; £25,000 per year).

The Class 1A and Class 1B rates are aligned with the secondary Class 1 rate and these too rise to 15% for 2025/26.

Employees

Employees have been spared from increases in their National Insurance bills. There is no change to the starting point at which contributions become payable as the primary threshold remains at £242 per week (£1,048 per month; £12,570 per year) and retains its alignment with the personal allowance. The upper earnings limit is also unchanged at £967 per week (£4,189 per month; £50,270 per year). The main primary rate remains at 8% and the additional primary rate remains at 2%.

Employed earners whose earnings are between the lower earnings limit and the primary threshold are treated as if they have paid contributions at a zero rate, which gives them a qualifying year for state pension purposes. The lower earnings limit is increased by £2 per week to £125 per week (£542 per month; £6,500 per year).

Self-employed earners

Self-employed earners pay Class 4 contributions if their earnings exceed the lower profits limit. This remains at £12,570 for 2025/26. The main Class 4 rate, payable on profits between the lower profits limit and the upper profits limit, which is also unchanged at £50,270, stays at 6% and the additional Class 4 rate, payable on profits above the upper profits limit, stays at 2%.

Self-employed earners whose profits are between the small  profits threshold and the lower profits limit receive a National Insurance credit, which provides them with a qualifying year for state pension purposes. The small profits threshold has increased to £6,845 for 2025/26. Self-employed earners with profits below this can opt to pay voluntary Class 2 contributions to secure a qualifying year. For 2025/26, these are payable at the rate of £3.50 per week.

Voluntary Class 3

Individuals who want to plug a gap in their contribution record can opt to pay voluntary Class 3 contributions if they are not eligible to pay voluntary Class 2. For 2025/26, Class 3 contributions are set at £17.75 per week.

Employees who incur expenses in undertaking their job may be able to claim tax relief for those expenses where they are not reimbursed by their employer. The expenses will qualify for relief if they are incurred wholly, exclusively and necessarily in the performance of the duties of their employment or meet the deductibility conditions for particular types of expenses, such as travel expenses or professional fees and subscriptions.

Last year, HMRC introduced new evidence requirements for claims for employment expenses. While the new rules were being implemented, they also closed their online expenses claim service for a limited period. During this time employees who wished to submit a claim for relief for employment expenses had to do so by post on form P87.

A new iForm went live in December, meaning employees can once again claim relief for employment expenses online.

Making an online claim

A claim can be made online using the new iForm by visiting the Gov.uk website at www.gov.uk/tax-relief-for-employees/travel-and-overnight-expenses, but only if the claim amounts to £2,500 or less in a single tax year.

Where the amount claimed is more than £2,500, it must be made in the tax return. Employees who are required to submit a Self Assessment tax return should make the claim in their return, even if it is for £2,500 or less.

Evidence required

Claims for tax relief for employment expenses must now be accompanied by evidence in support of the claim. The evidence that is required will depend on the nature of the claim.

For example, where the claim is for a subscription to a professional body, a receipt or other evidence of the amount paid to that body should be supplied. For mileage allowance claims, a mileage log should be maintained which shows each journey, the postcode for the start and end of the journey and the reason for the journey. The mileage log should be supplied with claims for mileage allowance relief.

Where an employee is required to work from home some or all of the time, a claim can be made for the additional household costs incurred as a result. Where such a claim is made, the claimant will need to submit a copy of their employment contract or such other document as makes it clear that the employee is required to work from home rather than working from home through personal choice.

For other expenses, a receipt or other evidence, such as a bank or credit card statement, must be provided which shows both the item in respect of which relief is claimed and also that the claimant paid for that item.

Evidence is not required for flat rate expenses claims made for uninforms, work clothing and tools.

For unincorporated businesses, from 6 April 2024 onwards the cash basis is the default basis of accounts preparation. Unlike the accruals basis under which income and expenditure must be matched to the accounting period to which it relates, where the cash basis is used, income is only taken into account when received and expenditure when paid. This presents some tax planning opportunities around the end of the tax year as regards the timing of income and expenditure.

1. Consider delaying invoicing

If income is likely to be taxed at a higher rate in 2024/25 than in 2025/26, consider delaying invoicing so that a receipt will fall in 2025/26 when it will be taxed at a lower rate.

Example

A sole trader is a higher rate taxpayer in 2024/25, but expects to be a basic rate taxpayer in 2025/26. In March 2025 he undertakes a job, the fee for which is £5,000. If he delays invoicing for the work until April 2025 so that he receives the fee in 2025/26, he will pay tax on it at 20% rather than at 40%.

Delaying invoicing will also delay the time at which the tax is payable on the work. Tax for 2024/25 is due by 31 January 2026, whereas that for 2025/26 is due by 31 January 2027.

• Consider invoicing early

Conversely, if the taxpayer is a basic rate taxpayer in 2024/25 but expects to be a higher rate taxpayer in 2025/26, or if they have not used their personal allowance for 2024/25, invoicing early so that the receipt falls in 2024/25 rather than 2025/26 will save tax.

• Consider advancing expenditure

Taxable profits can be reduced by reducing income or increasing expenditure. Where the cash basis is used, taxable profits for 2024/25 can be reduced by bringing forward planned expenditure so that it falls in 2024/25 rather than in 2025/26.

Example

A sole trader is planning to buy a van. The van will cost £15,000. If the van is purchased before the end of the 2024/25 tax year, the expenditure will fall in 2024/25 and can be deducted in calculating the taxable profits for 2024/25, reducing the tax that is payable for that year. If the purchase is delayed beyond 5 April 2025 so that it falls in the 2025/26 tax year, the sole trader will need to wait a further year to benefit from the tax deduction.

• Consider delaying expenditure

If the taxpayer is likely to pay tax at a higher rate in 2025/26 or has not fully used their 2024/25 personal allowance, it will be advantageous to delay planned expenditure so that it falls within the 2025/26 tax year to secure tax relief for the expenditure at the best possible rate.

Most individuals are entitled to receive a personal allowance. This is the amount that they are able to earn before they pay tax. For 2024/25, the personal allowance is set at £12,570. The allowance is for the tax year only – if you do not use it in the tax year, you lose the benefit of it; you cannot carry any unused amount forward to the next tax year.

As the end of the tax year approaches, if you have yet to use your 2024/25 personal allowance, you may want to consider whether there is scope to do so.

1. Pay a salary or a bonus

If you operate a personal or family company, you may wish to consider withdrawing further profits in the form of a salary or bonus before 6 April 2025. For 2024/25, the optimal salary is one equal to the personal allowance of £12,570 where the allowance is not used elsewhere. If you have yet to pay a salary of this level, there is still time to do so before the end of the tax year.

2. Advance income or defer expenses

For 2024/25 onwards, the cash basis is the default basis of assessment for unincorporated businesses. Under the cash basis, income is assessed when received and expenses recognised when paid. If your taxable profit for 2024/25 is less than your personal allowance and you have no other income, consider whether you can bring profit into 2024/25 rather than 2025/26 by accelerating income (for example, by invoicing early) or by delaying paying expenses.

3. Consider pension payments

If you have reached the age of 55 and have already flexibly accessed your pension, for example, by withdrawing your 25% tax-free lump sum, consider taking further payments from your pension to use up any remaining personal allowance as this will enable you to withdraw further amounts from your pension tax-free.

4. Preserve the allowance if you are a high earner

The personal allowance is reduced once adjusted net income reaches £100,000. For every £2 by which adjusted net income exceeds £100,000, the personal allowance is reduced by £1 until fully abated once income reaches £125,140. Individuals whose adjusted net income is £125,140 or more in 2024/25 do not receive a personal allowance. However, to prevent the loss of the personal allowance, consideration could be given to delaying income, for example, deferring bonus or dividend payments from a personal or family company, or reducing adjusted net income by making pension contributions or charitable donations.

5. Consider the marriage allowance

If you are married or in a civil partnership and are unable to use your 2024/25 personal allowance in full, consider whether you can make use of the marriage allowance to save tax. If your spouse or civil partner is a basic rate taxpayer, you can transfer £1,260 of your personal allowance to them by making a marriage allowance claim. This will reduce their tax bill by £252.

Individuals have a separate tax-free allowance for capital gains tax purposes – the capital gains tax annual exempt amount. Although it has been reduced considerably in recent years and is only £3,000 for 2024/25, making use of the allowance can still generate tax savings of up to £720.

The annual exempt amount applies to reduce the amount of net gains for the year on which capital gains tax is chargeable. The exempt amount is deducted from chargeable gains for the year after allowable losses for the year have been deducted, but before taking account of allowable losses brought forward from previous tax years.

Where a disposal is on the cards which may realise a chargeable gain, if the annual exempt amount for 2024/25 has not been used in full, making the disposal before the end of the 2024/25 tax year rather than after 5 April 2025may be beneficial as it will not eat into the 2025/26 annual exempt amount.

Before making the disposal, the size of the gain should also be taken into account. If the chargeable gain is less than £3,000 and the annual exempt amount is available in full, from a tax perspective, it will be beneficial to make the disposal in the 2024/25 tax year so as not to waste the 2025/26 annual exempt amount.

Spouses and civil partners

Spouses and civil partners each have their own annual exempt amount. Where one partner is planning to make a disposal, they should consider not only their available exempt amount, but also that of their spouse or civil partner. While spouses and civil partners cannot transfer their annual exempt amount to their partner, any transfers of assets between them are at a value that gives rise to neither a gain nor a loss. This means that by making a transfer of an asset or a share of an asset prior to disposal it is possible to utilise both partners’ annual exempt amounts.

Example

John and Julie are married. John wants to dispose of some shares which he expects to realise a gain of £2,700. As John has already used up his annual exempt amount for 2024/25, he is planning to wait until after 5 April 2025 to make the disposal, so that he can set his 2025/26 annual exempt amount against the gain.

However, Julie has not made any chargeable disposals in 2024/25 and her annual exempt amount for 2024/25 remains available. If John transfers the shares to Julie, taking advantage of the no gain/no loss rules, and she disposes of them before 6 April 2025, the gain will be sheltered by her 2024/25 annual exempt amount. By proceeding in this manner, Julie’s annual exempt amount for 2024/25 is not wasted, and both John and Julie have their annual exempt amounts for 2025/26 available to shelter disposals in that year.

Consider your marginal rate of tax

Chargeable gains are taxed at 18% where income and gains do not exceed the basic rate band and at 24% once the basic rate band has been used up. If the gain on a planned disposal will exceed the available annual exempt amount, it is necessary to take into consideration the rate at which the remainder of the gain will be taxed. Depending on the size of the gain, if the taxpayer is a higher rate taxpayer in 2024/25 but will be a basic rate taxpayer in 2025/26, it may be better to wait until 2025/26 to make the disposal, even if the annual exempt amount for 2024/25 is wasted. The aim is to minimise the tax payable on the gain, and there is no substitute for doing the sums.

If you are the owner of a personal or family company, it is prudent to review your dividend strategy before the 2024/25 tax year comes to an end as assessing whether paying a dividend before 6 April 2025 would be beneficial.

Sufficient retained profits

The first point to note is that dividends are payable from retained profits and the payment of a dividend can only be entertained where the company has sufficient retained profits from which to pay a dividend. These are post-tax profits on which corporation tax has been paid.

Unused dividend allowances

Where the shareholders have not used their dividend allowances in full for 2024/25, as long as the company has sufficient retained profits, it will generally be worthwhile to pay a dividend to make use of these unused allowances. All individuals are entitled to a dividend allowance regardless of the rate at which they pay tax. For 2024/25, the dividend allowance is set at £500.

Dividends are treated as the top slice of income. No tax is payable where the dividend is sheltered by the allowance, but the allowance does use up part of the tax band in which it falls. In this way, the dividend allowance operates like a zero-rate band rather than a true allowance.

Where a company has more than one shareholder, the dividend strategy will depend on whether the company has an alphabet share structure. This is where each shareholder has their own class of share, for example, A ordinary shares, B ordinary shares, etc. Where this is the case, the dividend payable to each shareholder can be tailored to the level of their available dividend allowance.

In the absence of an alphabet share structure where all shareholders have the same class of share, dividends must be paid in proportion to shareholdings.

Unused personal allowance

While it will generally be preferable to pay a salary equal to the personal allowance before extracting profits as dividends, if the company has shareholders who do not work in the company and who have not used their personal allowance for 2024/25 in full, it can be beneficial to pay them further dividends to mop up their unused personal allowance. There will be no further tax to pay on dividends which are sheltered by the personal allowance.

Unused basic rate band

If profits are needed outside the company and the shareholder has not used up all their basic rate band for 2024/25, it may be preferable to pay a dividend before 6 April 2025 where it will be taxed at the dividend ordinary rate of 8.75% if the dividend will be taxed at a higher rate (either the dividend upper rate of 33.75% or the additional dividend rate of 39.35%) if the dividend is paid in 2025/26.

Leave the profits in the company

If the dividend allowance and the personal allowance have been used in full and funds are not needed outside of the company, it may be preferable to leave the profits in the company as paying a dividend before 6 April 2025 will come with an associated tax bill.

There are various reasons why tax may be overpaid, and when more tax has been paid than is due, it is understandable that the taxpayer will want this to be refunded as soon as possible. The process for claiming a refund depends on why the overpayment arose.

Employees

An employee may have paid too much tax on their employment income. This may be the case if their tax code is incorrect or because they have incurred expenses on which tax relief is due.

A claim for relief for employment expenses can be made using the online service on the Gov.uk website or by post on form P87. It is important to include the required supporting evidence with the claim.

If the employee has received a tax calculation letter (P800) showing that they are due a refund, they should follow the instructions in the letter for claiming that refund. Where the letter indicates that the claim can be made online, the claim should be made using the online service on the Gov.uk website at www.gov.uk/tax-overpayments-and-underpayments/if-youre-due-a-refund. The claimant will need to provide the reference number from the P800 letter and their National Insurance number. The refund should be made to the claimant’s bank account within five days. A refund can also be claimed through the taxpayer’s personal tax account or using the HMRC app, or by writing to HMRC. Where the tax calculation letter informs the taxpayer that they will be sent a cheque, they do not need to make a claim as the cheque will be sent to them by post. This should be received within 14 days of the date on the P800 letter.

Taxpayers who have yet to receive a P800 for 2023/24 should receive it by the end of the March.

Self Assessment overpayments

A taxpayer may be due a refund under Self Assessment if their income has fallen and the payments made on account exceed their liability for the year. They may also be due a repayment if a loss relief claim has been made.

An application for a refund where tax has been overpaid can be made in the return, and where this has been done HMRC will usually send the repayment automatically within two weeks of the return being submitted. If a refund was not requested in the return, it can be claimed through the taxpayer’s online Self Assessment account. They simply need to choose the ‘Request a Repayment’ option and follow the instructions.

A refund can also be claimed through the taxpayer’s personal tax account by selecting ‘Claim a refund’ and following the instructions. A similar process is followed where a refund is claimed through a business tax account. Refunds can be paid into UK bank accounts, or the taxpayer can request a cheque. A refund is normally paid within two weeks of making a claim.

When starting a business, there are various decisions to make and tasks to perform. One of the first questions to address is whether to run the business as a sole trader, whether to set up a partnership with others or whether to form a company. The way in which a business is operated will determine the taxes that are payable and legal obligations that must be met.

A person operating as a sole trader is in business for themselves. This is arguably the simplest way to run a business.

Registering with HMRC

A person operating as a sole trader will need to register with HMRC for Self Assessment if they have trading income of £1,000 or more. This is the total from all unincorporated businesses, not per business.

If a person is already registered for Self Assessment, for example, because they have investment income or income from property to report to HMRC, they do not need to register again. Rather, they will simply need to complete the Self-Employment pages of the return to report details of their business income.

If a new trader is not registered for Self Assessment, they will need to do so by 5 October following the end of the tax year in which they first became liable to register. For example, if a person started a business in 2024/25 and their turnover was more than £1,000, they will need to register for Self Assessment no later than 5 October 2025. A person can register via the Gov.uk website (see www.gov.uk/register-for-self-assessment).

A person who has previously been registered for Self Assessment, but did not file a return for the last tax year, will need to register again to reactivate their account.

Tax and National Insurance

A sole trader must pay income tax on their profits. Their profits form part of their total taxable income, which will be liable to income tax to the extent that it exceeds their personal allowance for the tax year. For 2024/25 and 2025/26, the personal allowance is £12,570. Income tax is charged at 20% on the first £37,700 of taxable income. Taxable income in excess of £37,700 up to £125,140 is taxed at 40%, and anything over £125,140 is taxed at 45%. Where adjusted net income exceeds £100,000, the personal allowance is reduced by £1 for every £2 of income in excess of £100,000, such that anyone with adjusted net income in excess of £125,140 does not receive a personal allowance.

Self-employed individuals must pay Class 4 National Insurance if their profits exceed £12,570. This is payable at a rate of 6% on profits between £12,570 and £50,270 and at 2% on any profits in excess of £50,270. Where profits exceed the small profits threshold (set at £6,725 for 2024/25 and increasing to £6,845 for 2025/26), no Class 4 National Insurance contributions are payable. However, the trader will earn a National Insurance credit which will provide them with a qualifying year for state pension purposes. Sole traders with profits which are below the small profits threshold can opt to pay voluntary Class 2 contributions to build up their state pension entitlement. At £3.45 per week for 2024/25 (increasing to £3.50per week for 2025/26), this is a much cheaper option than paying voluntary Class 3 contributions, and may be beneficial if the sole trader would not otherwise secure a qualifying year.

Tax and Class 4 National Insurance contributions must be paid by 31 January following the end of the tax year. Once the tax and Class 4 liability reaches £1,000, payments on account must be made for future tax years.

VAT

A sole trader will need to register for VAT if their VATable turnover exceeds the VAT registration threshold of £90,000 in the previous 12 months, or is expected to do so in the next 30 days.

Records

The sole trader will need to keep records of their business income and expenses to enable them to work out their taxable profits. It is a good idea to have separate personal and business bank accounts to avoid personal and business expenses getting mixed up. The trader should also keep invoices, receipts, etc.