Accounting app for Sole Traders – Your MTD-Ready Solution

Q: How much tax does a sole trader pay?

You pay Income Tax on your profits (after expenses) and Class 2 and Class 4 National Insurance contributions if your profits are above the thresholds.

Q: Do I need to charge VAT?

Only if your turnover exceeds the VAT threshold (£90,000 in 2025) or you choose to register voluntarily.

Q: What expenses can I claim?

You can claim costs that are wholly and exclusively for business use, such as office supplies and tools, travel costs, business insurance, marketing and advertising, and a portion of home costs if you work from home.

Sole Trader

Why choose Kletta?

Running your own business means wearing many hats. Kletta app reduces the burden of bookkeeping so you can put your energy where it matters most your customers.

Automated expense tracking

receipts and bank transactions organised with AI.

Professional invoicing

create and send invoices in seconds, straight from your phone.

Built for sole traders

tailored features that save you time and cut paperwork.

Book a demo »

Download Kletta from the App Store

Accounting

Your bookkeeping is automatically generated based on sent invoices and recorded expenses

Making Tax Digital

Automated Income Tax & Self Assessment (ITSA) returns ready for coming quarterly & yearly Tax reporting basis.

Capture receipts

Take a picture of the receipt, check and save it. The receipt is automatically saved as an expense in your accounting.

Invoicing

Create & send invoices quickly on-the-go. Integration into Companies House for quick customer data input into invoices.

Expenses & millages

Scan receipts and claim expenses. Capture mileages on-the-go.

Chat and support

You can ask questions about accounting and financial management in the app chat.

FAQ – Sole Trader UK

What is a sole trader?

A sole trader is the simplest business structure in the UK. It means you run your business as an individual and are personally responsible for its profits, taxes, and debts.

Do I need to register as a sole trader?

Yes. You must register with HMRC for Self Assessment if you earn more than £1,000 from self-employment in a tax year.

How much tax does a sole trader pay?

You pay:

Income Tax on your profits (after expenses).
Class 2 and Class 4 National Insurance contributions if your profits are above the thresholds.

Do I need to charge VAT?

Only if your turnover exceeds the VAT threshold (£90,000 in 2025) or you choose to register voluntarily.

What expenses can I claim?

You can claim costs that are wholly and exclusively for business use, such as:

Office supplies and tools
Travel costs
Business insurance
Marketing and advertising
A portion of home costs if you work from home

Do I need a business bank account?

It’s not a legal requirement, but it’s highly recommended to keep your business and personal finances separate.

Start your free trial

Download Kletta from the app store

Sole Traders

Accounting app for Sole Traders – MTD Ready