Whether you are on a construction site in High Wycombe, baking artisan treats in your kitchen, or providing aesthetic treatments in a local studio, your day-to-day work couldn't be more different. However, once the tools are put away and the apron comes off, every sole trader shares one identical goal: making the business work financially.
Now that the final rush of the January 31st tax deadline is (hopefully) behind us, we’ve reviewed the "first-time" returns we completed for our new clients. We noticed some recurring themes that are costing traders money and sleep.
Here is how you can master your finances and avoid the common pitfalls we saw this season.
Don’t Leave Your Expenses on the Table
A builder knows the cost of timber; a baker knows the price of flour. But many traders are hesitant to claim the "invisible" costs of running a business. If you are a sole trader, you only pay tax on your profit. Every pound you don’t claim is a pound HMRC assumes is profit—meaning you pay tax on money you’ve already spent.
What we found missing this year:
The 45p per mile rule: Many traders forget to log their mileage. If you drive 5,000 miles a year for work, that is £2,250 off your taxable profit.
Home Office Use: If you do your admin at home, a proportion of your heating, lighting, and broadband is an allowable expense.
Trade Tools & Subscriptions: From specialised software to professional bodies, if it helps you do your job, it’s likely claimable.
Stop Taxing Your Own Savings
We found several new clients including items in their "Income" column that shouldn't be there. If you transfer £500 from your personal savings into your business account to cover a bill, that is Capital, not Earnings.
If you list that as income, HMRC will tax you on your own money. Our role at Cashtrak is to "clean" your data so you only pay what is legally required—and not a penny more.
The "April to January" Breathing Space
The biggest myth we heard this year was: "I don't want to submit my return in April because I can't afford to pay the tax yet."
This is a mistake that causes massive January stress. You can submit your tax return on April 6th, the very first day of the new tax year. However, your tax bill is still not due until January 31st of the following year.
By submitting early, you get:
An Exact Figure: You know exactly what you owe 9 months in advance.
Budgeting Power: You can set aside a small amount each month rather than scrambling for a lump sum in mid-winter.
Peace of Mind: You aren't going through a bag of receipts late in January!
Navigating the "July Payment" Surprise
For those who have recently grown their business or added new income streams, for example: selling skincare or beauty products (such as Younique, Arbonne, Neals Yard or Tropic alongside rental income), you might have noticed a new requirement: Payments on Account.
If your tax bill exceeds £1,000, HMRC asks for half of next year's estimated tax in advance every July. It feels like paying twice, but it’s actually a way to prevent a massive debt building up. Submitting in April allows us to see if we can reduce these July payments if your earnings have fluctuated.
Why Cashtrak is the Ultimate Trade Tool
A lot of people think a bookkeeper is an "expense." At Cashtrak, we see ourselves as a partner in your growth. We often find enough "lost" expenses and tax-saving opportunities to cover our own fees.
Beyond the maths, we give you back your time. Instead of spending your weekends fighting with spreadsheets, you can focus on your family, craft, hobby, whatever you want!
Ready to master your finances for 2026? Don't wait until next January. Let’s get your systems set up now so you can submit in April and relax for the rest of the year.
Call or Whats App us: 01865522785
Email us: info@cashtrak.co.uk
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