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Pennywise Finance Editorial
UK personal finance team — researchers and editors covering savings, ISAs, investing, mortgages and retirement.
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Reviewed August 2026

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UK small business and freelancing in 2026/27

Roughly 4.4 million people in the UK are self-employed. Another 5.5 million work for a small business with fewer than 10 employees. This hub covers the practical decisions each of them faces — sole trader vs Ltd company, bookkeeping, card payments, freelance tools, and eventually exit — plus the affiliate-partnered tools we think work best in each category.

Getting started

Running the business

Exit — buying or selling

Cross-portfolio bridge: Our sister site Freelance Toolkit covers IR35 status, invoicing, and the day-to-day toolkit for UK freelancers in more depth.

Small business quick answers

Sole trader or limited company?

Sole trader is simpler and cheaper to run. Limited company is more tax-efficient above roughly £30,000-£40,000 profit and provides limited liability. See our Ltd company guide.

Do I need to register for VAT?

Compulsory once taxable turnover exceeds £90,000 in a 12-month rolling period. Voluntary registration below that can be worthwhile if your customers are VAT-registered themselves.

How do I take card payments?

Options: card readers (SumUp, Zettle, Flatpay, Square), online (Stripe, PayPal), invoicing-based (GoCardless, Wise). See our card payments guide.


Frequently asked questions

Related pages

General information only, not personalised financial advice. Pennywise Finance is not authorised by the FCA. For decisions involving significant sums, consult an FCA-authorised adviser or the free MoneyHelper service.