FREELANCERS & SOLE TRADERS
Freelancer or Sole Trader?
A 'freelancer' and a 'sole trader' are basically the same thing. Different industries tend to use different terms. For example, in creative industries they might use the term 'freelancer', while in the construction industry they use another term: 'sub-contractor'.
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Freelancers / Sole Traders / Sub-contractors are all required to complete a self assessment year year, which is their submission to HMRC of their income and expenses for the tax year. These individuals are 'self employed' - they employ themselves. They work for themselves, they are also the business.
Are you ready to get digital?
Starting in 2026, all self-employed businesses, sole traders, and landlords with income exceeding £10,000 must comply with Making Tax Digital regulations.
Three easy steps to help you manage your self employed financial accounts
1. Open a dedicated business account for the property business;
2. Funnel all transactions related to the property through the business bank account;
3. Integrate the bank statement into a cloud-based accounting software. We can recommend Xero.
With a cloud-based accounting software, you can attach all transaction receipts and invoices online, thereby acting as an excellent way of storing your records.
Help me on my path to growth​