When you see the tax return you will see that all your incomes are reported, ie employment, self employment, savings etc. If you are a basic rate tax payer than when you cease your sole trade, then you won’t need to do any more tax returns.

What you are taking as a "salary" is not an expense for tax purposes, but you can certainly claim travel etc. There are quite complicated rules about what you can cant/claim - for example for using your own car there is the option to use mileage allowances rather than claiming actual costs.

I know I am biased but it it is a simple return it really won’t cost a lot to have it completed professionally, and often the fee is re-cooped in tax savings. It also means you don’t have to worry about whether you have done it correctly or not and spend hours trying to fill the sodding form in. You may also find that once you have one or two completed you can do them yourself ongoing.

The new edition of my book "how to complete your tax return" for 2005/6 will have a sole trader section but like any guide of its type can only make so many suggestions as to what is deductible.

Hope this helps,

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT