Just registered as a sole trader? Here's everything you need to set up

You've registered with HMRC. You've got your UTR number (or it's in the post). Now what? This is the practical checklist nobody gives you. No jargon, no waffle — just what you actually need to do.

Get a business bank account

It is not legally required for a sole trader, but it is strongly recommended. Keeping personal and business money separate makes your records cleaner, your tax return easier, and your stress levels lower.

Popular options include NatWest, Starling, Tide, and Mettle. The key detail many new tradespeople miss: NatWest, RBS, and Ulster Bank can include FreeAgent at no extra cost for eligible customers. That matters later when MTD reporting becomes mandatory.

Set up invoicing from day one

You need to send professional invoices, not WhatsApp messages. A proper invoice should show your name, business name, address, UTR, invoice number, date, description of work, amount, and payment terms.

If you are a tradesperson, you also need quoting and invoicing because customers expect a proper quote before work starts. Billdr handles both: create a quote from your phone in around 90 seconds, convert to invoice in one tap, and let customers pay online.

Getting invoicing right from day one means cleaner records for your first Self Assessment and fewer late-night admin catch-ups.

Track every expense from the start

HMRC lets you deduct business expenses from taxable profit. For tradespeople, key categories include materials, tools, vehicle and fuel, phone, insurance, protective clothing and PPE, and training.

The biggest mistake new sole traders make is not keeping receipts. Photograph every receipt the same day you get it. If you want the full breakdown of what is claimable, read our complete UK sole trader expenses guide.

Billdr's AI receipt scanner categorises expenses to HMRC-style codes automatically, so you spend less time sorting and more time on paid work.

Log your mileage — this is free money

HMRC simplified mileage rates are 45p for the first 10,000 miles and 25p above that. Most tradespeople underclaim mileage and lose thousands each year.

Start logging from your first job. You cannot reliably backdate this from memory months later. We explain the rules and examples in our mileage tracking guide for sole traders. Billdr applies HMRC rates automatically as you log journeys.

Understand your tax deadlines

Self Assessment is filed by 31 January, and tax is usually paid by 31 January too, with payments on account often due on 31 July. Put these dates in your calendar early.

For MTD for Income Tax, if you earn above £50,000, quarterly digital updates are mandatory from April 2026. Above £30,000 is expected from April 2027. If you are likely to hit the threshold, register and prepare early rather than waiting for deadline pressure.

If you are unsure how MTD works in plain English, read our MTD explainer for sole traders.

Do you need an accountant?

It is not legally required, but it is strongly recommended in your first year. A good accountant will usually save you more than they cost by helping you set up properly and avoid common mistakes.

Look for someone who understands sole traders and tradespeople, not only limited companies. Billdr's accountant pack PDF gives them organised records in one place, which can save them time and may reduce your fee. Ask your accountant whether they already support Billdr and have a referral code.

If you plan to run Billdr with FreeAgent for MTD-ready records, this guide walks through the setup: FreeAgent and Billdr for tradespeople.

The tools you need

• Business bank account (NatWest, Starling, Tide, or similar).
• Invoicing and expenses app (Billdr — £9/month, 30 days free).
• Accounting software for MTD (FreeAgent — often free with NatWest, or around £19/month). Billdr connects to FreeAgent automatically.

That is it. You do not need ten different tools to run a clean sole trader setup.

Starting out? Billdr is built for exactly this moment. Quotes, invoices, expenses, mileage, and MTD — all from your phone. 30 days free, no card. Start at billdr.co.uk/signup.