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Article By GoSimpleTax  

Personal tax allowances are tax-free amounts of income that you’re allowed to earn or receive. Several types of personal tax allowance are available and all of the main ones are available to UK sole traders.  

Claiming personal tax allowances can reduce your annual sole trader tax bill significantly, so it’s important to know which ones are available to you, especially as HMRC will not contact you to tell you, you need to find out and claim them for yourself.  Here are the main personal tax allowances you might be able to claim, with some basic information on what they could be worth to you. 

Personal Allowance 

An obvious place to start, the Personal Allowance is income that you can earn or receive before you have to pay any Income Tax, whether you’re a self-employed sole trader or an employee working for someone else. The standard Personal Allowance is £12,570 a year (2025/26 tax year). The Personal Allowance decreases by £1 for every £2 of income you receive over £100,000 and if your taxable income is £125,140 or more, the Personal Allowance is not available to you. 

Trading Allowance 

The Trading Allowance is £1,000 a year tax exemption that you can earn in self-employed income without having to pay any tax. This can be added to your Personal Allowance. Usually, it’s claimed by those who do occasional casual work here and there, not sole traders with a far bigger turnover. If you do claim the trading allowance, you cannot claim allowable expenses for things you buy for your sole trader business. So, it would not make sense to claim the Trading Allowance if your tax expenses were more than £1,000 within a tax year. Ordinary partnership members cannot claim the Trading Allowance.  

Property Allowance 

Many sole traders also earn income from renting out property or land. The Property Allowance is another £1,000-a-year tax exemption available to landlords who earn taxable income from land or property they rent out. If you earn sole trader and property rental income, you can claim the Trading Allowance and the Property Allowance, although you cannot claim tax expenses for either if you do. If you jointly own a property, you and your fellow property owners can each claim the £1,000 Property Allowance against their share of the annual rental income.  

Dividend Allowance 

Sole traders who own company shares may have to pay tax on dividend payment income they receive. They can claim the Dividend Allowance, which is a tax-free allowance worth £500 for the 2025/26 tax year (the allowance used to be far higher, in 2022/23 it was worth £2,000). Income tax is only payable on dividends above the £500 threshold, providing other taxable income exceeds the Personal Allowance (£12,570 in 2025/26).  

Marriage Allowance 

If you’re a sole trader who is married or in a civil partnership and your income is less than £12,570 a year (i.e. the standard Personal Allowance), you may also be able to claim Marriage Allowance, which can reduce your spouse’s/partner’s tax liability. Alternatively, they may be able to claim it to reduce yours. The Marriage Allowance enables sole traders to transfer £1,260 of their Personal Allowance to their spouse or civil partner, which can reduce their tax by up to £250 in the tax year (or vice versa). Regardless of whether you co-habit with someone, you must be married or in a civil partnership to claim the Marriage Allowance. 

Other personal tax allowances 

Those who pay the basic rate of Income Tax can claim the Personal Savings Allowance, which grants up to £1,000 of tax-free interest. Higher-rate Income Tax payers get £500 a year tax-free, but additional-rate Income Tax payers don’t qualify for personal savings interest allowance. 

You can claim the Blind Person’s Allowance if you or your spouse are registered blind. This could provide an extra £3,130 of tax-free income in 2025/26. If you do not use it all yourself, some of the Blind Person’s Allowance can be transferred to your spouse. 

Tax-Free Childcare 

If you’re a sole trader with young children, to help cover your childcare costs, you could get up to £500 every three months (ie up to £2,000 a year) for each child. If your child has a disability, you could claim up to £1,000 every three months (ie up to £4,000 a year). 

To get Tax-Free Childcare, you apply online and set up an online childcare account. Then for every £8 you pay into the account, the government will pay an additional £2 that you can use to pay your chosen childcare provider. If you’re eligible for both, it’s possible to get Tax-Free Childcare as well as 15 or 30 hours of free childcare. 

The money must be used to pay for approved childcare, which includes childminders, nurseries and nannies, as well as after school clubs and play schemes. The childcare provider must be signed up to the scheme, so check in advance. Visit government website GOV.UK for more information about Tax-Free Childcare.   

About GoSimpleTax  

Simple, straightforward and designed to save you time and money. GoSimpleTax is a fully HMRC recognised online tax software for anyone who needs to file a Self Assessment tax return.  

Get started with GoSimpleTax it’s free to try! 

Article by GoSimpleTax 

Having just filed your 2023/24 Self Assessment tax return, hopefully ahead of the 31 January online filing deadline, you probably don’t want to have to think about your next tax return for a good while. That’s perfectly understandable.  

However, there are a few very good reasons to start looking at your 2024/25 tax return now, before the tax year ends on 5 April – and not just because it would allow you to file after 6 April and get it done and dusted nice and early. 

Self Assessment filing stats 

• More than 11.5m taxpayers filed their 2023/24 Self Assessment tax return before the 31 January 2025 deadline (source: HMRC). 

• 732,498 filed their tax return on deadline day, with 31,442 filing in the final hour.     

• Almost 70,000 people filed their 2023-24 tax return on 6 April 2024, the start of the new tax year and the first day it was possible to file. 

• Almost 300,000 filed their tax return in the first week of the new tax year, almost 10 months before the online filing deadline. 

Why file your tax return early?  

There’s a clear trend for people choosing to file their Self Assessment tax return early. You can in fact start work on filling in your next tax return before the end of the current tax year. Crucially, it can enable you to find out roughly how much tax you’ll owe, which might enable you to pay more into your pension, for example, rather than paying as much tax. Seek advice from an accountant on the most tax-efficient option for you.   

Getting your Self assessment tax return filed nice and early will also give you peace of mind from knowing it’s off your plate for another year. Then you avoid the stress of having to rush in January to file before the online-filing deadline. Who needs that? Rushing can also increase the likelihood that you’ll make mistakes, of course.  

Earlier tax refunds 

Knowing how much tax you owe also enables you to budget for paying your tax bill or speak to HMRC to find a solution if you’re going to struggle to pay. One such solution could be paying in installments. Filing early can also help you to get a tax refund quicker. As soon as your tax return has been processed, HMRC will let you know if you’re due a refund and arrange for your overpayment to be paid back sooner.  

Some people file early because they need proof of income, often if they need a mortgage or loan, or want to claim certain benefits. Knowing how much tax you owe can also enable you to judge how well your business is performing and plan for the future. If you’re employed, filing your Self Assessment tax return early might enable you to pay any additional tax you owe via PAYE, should you choose. 

MTD for Income Tax     

This year, many sole traders and landlords will have another good reason to file their tax return early, instead of leaving it until December or January. That’s because Making Tax Digital for Income Tax is being introduced from 6 April 2026, for sole traders and landlords with a gross annual trading/rental income of more than £50,000.  

Once introduced, they’ll need to maintain digital financial records and use accounting software that can send digital income and expense summaries to HMRC every quarter. From 6 April 2027, sole traders and landlords with a gross trading/rental income of £30,000-£50,000 will need to do the same.    

If sole traders or landlords need to start using accounting software or change to new accounting software so they can comply with MTD for Income Tax requirements, it’s best to do so as soon as possible, so that they’re ready. Getting their Self Assessment tax return filed as soon as possible will clear the decks to help enable them to do so.   

About GoSimpleTax  

Simple, straightforward and designed to save you time and money. GoSimpleTax is a fully HMRC recognised online tax software for anyone who needs to file a Self Assessment tax return.  

Get started with GoSimpleTax today it’s free to try! 

At MYCO Works, we believe in the power of community and the importance of giving back. Inspired by this belief, we are thrilled to launch our very first charity partnership. In 2025, we are proud to support East Anglia’s Children’s Hospices (EACH) as our chosen charity of the year. We are excited to see how this initiative will shape us as a community and how much good we will spread across many precious lives. 

About EACH 

Established in 1989, East Anglia’s Children’s Hospices provide specialised care and support for children with life-limiting conditions. Guided by a warm, family-centred approach, EACH offers tailored medical care, assistance, and a comforting presence, ensuring families never face their journey alone. With a dedicated team of professionals and volunteers, EACH creates a nurturing environment where every child receives the highest quality care. 

What Services do EACH Provide?  

EACH offers a comprehensive range of services designed to meet the unique needs of those they support. From respite care that provides much-needed breaks, to expert symptom management for complex medical conditions, EACH is there every step of the way. The charity also provides emotional guidance, including counselling and bereavement services, helping families navigate the challenges of caring for a seriously ill child. During the most difficult moments, EACH ensures dignified and compassionate end-of-life care, offering comfort for both children and their loved ones. 

EACH’s Mission  

Beyond medical assistance, EACH’s mission focuses on creating meaningful experiences and lasting memories, ensuring families can cherish their time together. Whether through special outings, creative therapy sessions, or simply offering a comforting space, EACH strives to help families make the most of every moment. 

Where EACH Operates  

EACH serves East Anglia, including Cambridgeshire, Essex, Norfolk, and Suffolk. Their three hospices, The Nook in Norfolk, The Treehouse in Suffolk, and Milton in Cambridgeshire, offer welcoming spaces where children and their families receive personalised care. 

As well as these hospice locations, EACH extends their services directly into homes, hospitals, and communities. Their exceptional teams provide unwavering support wherever it’s needed most. 

Our Collaboration  

This partnership marks a significant milestone for MYCO Works, allowing us to channel our community efforts into a single organisation that makes a profound difference. Our team is dedicated to reaching our fundraising goal through a range of initiatives, including participation in EACH’s events and our own MYCO-led activities. With an exciting line-up of charitable efforts, we are committed to raising essential funds and awareness, ensuring that EACH can continue delivering its vital services to the children and families who need them most. 

We warmly invite our clients to join us on this journey, your generosity and involvement can help make a real difference. If you’d like to support our fundraising efforts, please click here to access our donation page. Every contribution, big or small, helps ensure that EACH can continue providing crucial care and comfort. Together, we can create a lasting impact for such an incredible charity 

For more information about EACH, and the inspiring work they do, click here to visit their website.