I am trying to prove that for $K$ a field of characteristic $p$ prime, $q$ a power of $p$ and $x,y$ in $K$,
$$(x+y)^q=(x^q + y^q).$$
I have the base case, and now I am trying to do the inductive step. So far I have that $$(x+y)^{p^{n+1}}=(x+y)^{p^n}(x+y)^p=(x^{p^n}+y^{p^n})(x^p+y^p)=x^{p^{n+1}}+y^{p^{n+1}}+y^px^{p^n}+y^{p^n}x^p.$$
So it just follows that I need to prove that $y^px^{p^n}+y^{p^n}x^p=0.$
I read that $x^p=1$ and $x^{p^n}=x$, so this would imply that $y^px^{p^n}+y^{p^n}x^p=x+y$ but this does not help fulfil the theorem.
What is the step I am missing?
You have a mistake in your first equality:
$(x+y)^{p^{n+1}} = (x+y)^{p^n \cdot p}$, while $(x+y)^{p^n}(x+y)^p = (x+y)^{p^n+p} \neq (x+y)^{p^{n+1}}$. Correcting this mistake fixes everything: \begin{align*} (x+y)^{p^{n+1}} &= (x+y)^{p^n \cdot p} = ((x+y)^{p^n})^p = (x^{p^n} + y^{p^n})^p = (x^{p^n})^p + (y^{p^n})^p = x^{p^{n+1}} + y^{p^{n+1}} \, . \end{align*}