Free UK Sole Trader Bookkeeping Spreadsheet
Track your income and expenses in one Excel workbook built around HMRC's own self-employment categories. Automatic quarterly totals, a live profit and loss, and records that are ready for Making Tax Digital - without buying accounting software.
Excel format. Works in Excel, Excel Online and Google Sheets. No macros, no signup, no catch.
| Category | Income | Expenses | Disallowable | Profit |
|---|---|---|---|---|
| Sales / Turnover | £18,400 | - | - | £18,400 |
| Motor & Travel | - | £1,250 | £180 | -£1,070 |
| Use of Home | - | £312 | - | -£312 |
| Q1 Total | £18,400 | £1,562 | £180 | £16,838 |
This template is provided free of charge as a general bookkeeping aid and does not constitute tax, legal, or financial advice. aligned.tax accepts no liability for any errors, omissions, or inaccuracies. By downloading this template you accept that sole responsibility for its use rests with you. We recommend consulting a qualified accountant for advice specific to your circumstances.
What is a sole trader bookkeeping spreadsheet? A sole trader bookkeeping spreadsheet is a workbook for recording self-employed income and expenses against HMRC's Self Assessment categories. This free UK template logs every transaction, separates disallowable costs, calculates quarterly and year-to-date totals automatically, and keeps your records in the format Making Tax Digital requires from April 2026.
Last updated: 1 July 2026
What's inside the spreadsheet
Everything you need to keep clean self-employed records through the tax year.
Transaction ledger with HMRC categories
Log date, amount, reference and description against 2 income and 16 expense categories that map directly to HMRC's self-employment fields. Guided dropdowns stop mis-categorised entries before they happen.
Automatic quarterly totals
Every transaction lands in the right quarter by its date. Cumulative year-to-date figures mirror exactly what's filed at each MTD quarterly update - no sorting, filtering or manual tallying.
Live profit and loss
Taxable profit and accounting profit update as you type, with a separate disallowable column so your real figures and your tax figures live side by side.
Simplified expenses calculator
Flat-rate mileage (55p per mile for the first 10,000 miles in 2026/27, then 25p), use-of-home and living-at-premises amounts worked out for you.
Built-in expense guide
A full HMRC category reference with allowable and disallowable examples, plus guidance on the £1,000 trading allowance, capital allowances, and cash versus traditional accounting.
Who this template is for
This spreadsheet is designed for UK sole traders and self-employed people who want a simple way to keep their books without moving straight to full accounting software.
If you run a limited company or need double-entry bookkeeping, this template isn't for you - it's built for self-employment income reported through Self Assessment.
Download the free spreadsheet- Sole traders and self-employed people who keep their own books
- Side-hustlers and new businesses not ready for accounting software
- Anyone whose accountant asks for "a tidy spreadsheet" each year
- Sole traders preparing for Making Tax Digital (April 2026 if you earn over £50,000; April 2027 over £30,000)
Set it up once, and the dates take care of themselves
Set your tax-year start once and every quarter date, deadline and label rolls forward automatically. Choose standard tax-year periods (6 April to 5 July, 5 October, 5 January, 5 April) or calendar-month periods (to 30 June, 30 September, 31 December, 31 March).
Record on cash basis - the default for most sole traders - or traditional accruals. Choose the full HMRC category breakdown, or totals-only reporting if your turnover is under £90,000.
- Standard or calendar update periods
- Cash basis or traditional accounting
- Detailed or simplified (totals-only) reporting
- Automatic £90,000 threshold warning
Example quarterly figures
- Total income
- £18,400
- Total allowable expenses
- £1,382
- Disallowable costs
- £180
- Taxable profit
- £16,838
Example figures only. Replace with your own numbers.
Spreadsheet, accounting software, or nothing?
| This spreadsheet | Accounting software | Pen and paper | |
|---|---|---|---|
| Cost | Free | £10-35/month | Free |
| Learning curve | None if you know Excel | Days to weeks | None |
| HMRC categories built in | Yes | Yes | No |
| Quarterly MTD totals | Automatic | Automatic | Manual |
| MTD digital records | Yes, with bridging software | Yes | No - not compliant once MTD applies to you |
| Best for | Sole traders with straightforward affairs | Complex businesses, VAT, payroll | Only if you stay under the MTD threshold (£50,000 from April 2026, £30,000 from April 2027, £20,000 planned from April 2028) |
Ready for Making Tax Digital
From April 2026, sole traders with qualifying self-employment income over £50,000 must keep digital records and send HMRC a quarterly update; the threshold drops to £30,000 in April 2027. See how HMRC works out qualifying income. You don't need to abandon Excel to comply. HMRC's rules allow spreadsheet records, provided the figures reach HMRC through software - and this template keeps everything in exactly that shape.
When your first quarterly update is due, upload this workbook to aligned.tax. Smart Map reads your data, maps it to HMRC's fields, and files it - free. Deadlines are 7 August, 7 November, 7 February and 7 May, with your tax return due by 31 January.
See how MTD works for sole tradersWhat MTD means for sole traders
- 1 Keep digital records of income and expenses
- 2 Submit quarterly updates to HMRC
- 3 Complete and submit your tax return
Never miss a quarterly update
The spreadsheet's dashboard highlights your next deadline automatically, so a missed quarterly update never sneaks up on you.
Standard update periods align to the tax year (6 April to 5 April). Most sole traders use these.
Calendar update periods end on the last day of the month. Use these if your accounting period ends on 31 March or another month-end date.
Standard periods
| Update period | Deadline |
|---|---|
| 6 April - 5 July 2026 | 7 August 2026 |
| 6 April - 5 October 2026 | 7 November 2026 |
| 6 April - 5 January 2027 | 7 February 2027 |
| 6 April - 5 April 2027 | 7 May 2027 |
Calendar periods
| Update period | Deadline |
|---|---|
| 1 April - 30 June 2026 | 7 August 2026 |
| 1 April - 30 September 2026 | 7 November 2026 |
| 1 April - 31 December 2026 | 7 February 2027 |
| 1 April - 31 March 2027 | 7 May 2027 |
Both types have the same deadlines - the difference is which dates your quarterly period covers. Your tax return is due by 31 January. The full MTD deadlines article has the exact dates for all quarterly periods.
Not sure whether you need to comply? Check your MTD obligations in the help centre.
Download the free sole trader spreadsheet
One workbook, free, with no email required.
Sole Trader Bookkeeping
UK, 2026-27
- Transaction ledger with HMRC categories
- Automatic quarterly totals and live profit and loss
- Built-in expense guide and simplified expenses calculator
File format: .xlsx (Microsoft Excel / Google Sheets / LibreOffice). No email required.
HMRC expense categories explained
Not sure which column to use? Here's what goes where - in plain English.
Include
- Stock and materials bought to sell on
- Direct costs of providing a service
- Subcontractor costs
Don't include
- Goods or materials for personal use
- Stock still unsold at year end (adjust separately)
Include
- Business mileage (55p/mile first 10,000, then 25p)
- Public transport for business journeys
- Parking and business motor costs
Don't include
- Commuting from home to a regular workplace
- Fines and penalties
Include
- Rent, rates, power and insurance for business premises
- Business use of home (see Simplified Expenses)
Don't include
- Costs for the part of your home that is entirely private
Include
- Repairs to business property and equipment
- Renewing small tools
Don't include
- Improvements that add value (this is capital)
The key test: are you restoring something to its original condition (repair) or making it better than it was (improvement)? Repairs are allowable. Improvements are capital.
Include
- Business phone calls and line rental (business proportion)
- Stationery, postage and printing
- Software subscriptions used for the business
Don't include
- Personal phone or internet use
Include
- Accountant and bookkeeper fees
- Business insurance and indemnity cover
- Bank charges and interest on business borrowing
Don't include
- Fines and penalties
- Personal legal costs
Include
- Advertising and website costs
- Trade subscriptions
- Training that maintains existing skills
Don't include
- Entertaining clients (not allowable)
- Training for a wholly new skill or trade
Not sure which column? Use "Other Allowable" and your accountant can reclassify later. It's better to record everything than to miss a legitimate deduction.
Record here
- Vehicles, equipment and premises
- Computers and other equipment kept for the business
Why it matters
- Capital spend may qualify for capital allowances instead
- Keeping records now saves time later
Capital expenditure is not an allowable revenue expense and won't be submitted to HMRC in your quarterly update, but it may qualify for capital allowances. Keep a record so your accountant can claim what you're entitled to.
When it helps
- Your self-employment income is small
- Your actual expenses are less than £1,000
When to use actual expenses instead
- Your real allowable expenses are higher than £1,000
If your self-employment income is small, you can claim the £1,000 trading allowance instead of your actual expenses. Claim whichever gives the lower taxable profit.
Frequently asked questions
Quick answers about the sole trader bookkeeping spreadsheet.
Yes. It's free to download and use, with no signup required. aligned.tax provides it as a general bookkeeping aid for UK sole traders.
Yes. Sole trader and self-employed mean the same thing for Self Assessment - the template works for any self-employment income reported to HMRC.
Yes. It's a full accounts template in Excel format (.xlsx) covering income, expenses, disallowable costs, quarterly totals and a live profit and loss.
Yes. There are no macros or add-ins, so it opens in Excel, Excel Online, Google Sheets and LibreOffice Calc.
Yes. HMRC allows digital records in spreadsheets, but the figures must reach HMRC through software rather than being typed into a portal. This template keeps records in a structured format that works with spreadsheet-friendly MTD software like aligned.tax - upload your spreadsheet and Smart Map reads the data, maps it to the right HMRC fields, and submits it.
Sixteen expense categories matching HMRC's self-employment fields - including cost of goods, motor and travel, premises, repairs, professional fees, and use of home - each with allowable and disallowable examples in the built-in guide.
Yes. Cash basis is the default, which suits most sole traders. You can switch to traditional (accruals) accounting on the Transactions sheet.
The template warns you automatically. Above £90,000 you must report the full category breakdown rather than totals-only, and the spreadsheet flags this before you file the wrong way.
If your self-employment income is small, you can claim the £1,000 trading allowance instead of your actual expenses. The template explains when each option gives you the lower taxable profit.