Variable income makes traditional budgeting hard. The most reliable approach is to work off a rolling average of the last six months' takings, treat tax as if it were already spent (a separate savings pot), and pay yourself a set 'salary' each month.
If debts are unmanageable, most formal solutions are still available — Debt Management Plans, IVAs and, in some cases, Debt Relief Orders. Bankruptcy will affect trading if you're a company director but is possible for sole traders.
HMRC debts are almost always the highest priority for the self-employed. Time to Pay arrangements are the first port of call — free debt help can help you present figures that HMRC is more likely to accept.
Related reading
Debts for the Self-Employed
Self-employed and behind on HMRC
Falling behind with tax as a sole trader is very common — and very fixable if you act early.
ReadStudent Loans
UK student loans — how repayment really works
Student loans are collected through PAYE (or Self Assessment) based on income above a threshold, and are written off after a set period.
ReadStudent Loans
When do student loans get written off
The write-off date depends on your plan type, not on how much you've paid.
ReadDebts for Pensioners
Managing debt in retirement
Additional protections and unclaimed benefits mean older people often have more options than they realise.
Read