Sole Trader Tax Accountant

How our Accountants can help you!

• Sole Trader Responsibilities

  As a sole trader, you are responsible for the following:

  1. Registering for self-assessment with HM Revenue & Customs (HMRC) and submitting annual self-assessment tax returns.
  2. Keeping accurate records of your business income and expenses for tax purposes.
  3. Registering for VAT if your business turnover exceeds the VAT threshold.
  4. Complying with all relevant laws and regulations, including health and safety, data protection, and employment laws.
  5. Paying all taxes and National Insurance contributions that are due, including income tax and National Insurance on your business profits.
  6. Keeping records of all business transactions, including invoices, receipts, and bank statements.
  7. Obtaining any necessary licenses and permits for your business.
  8. Obtaining your own insurance cover for your business, such as public liability insurance.
  9. Being responsible for all debts and liabilities incurred by your business.
  10. Filing annual accounts with Companies House if your business is a limited company.

  While being a sole trader offers more flexibility, it also comes with more responsibilities than other business structures. It’s important to seek professional advice from an accountant or lawyer to ensure that you are meeting all your legal and financial obligations as a sole trader.

• What are the benefits of a sole trader accountant?

  Having an accountant as a sole trader can provide many benefits, including:

  1. Compliance: An accountant can help ensure that your financial records and tax returns are accurate and in compliance with all relevant laws and regulations, reducing the risk of fines and penalties.
  2. Tax Savings: An accountant can provide expert advice on tax planning and help you minimize your tax liability, potentially saving you money.
  3. Record Keeping: An accountant can assist with bookkeeping and record-keeping, which can be time-consuming and confusing for those without experience in accounting.
  4. Business advice: An accountant can provide valuable insights and advice on how to improve the financial performance of your business and help you grow your business.
  5. Time-saving: An accountant can take care of many of the time-consuming and confusing tasks that come with running a business, such as preparing and filing tax returns, allowing you to focus on running your business.
  6. Access to professional networks: An accountant can open doors to other professionals, such as lawyers and financial advisors, who can provide additional support and advice for your business.
  7. Stress reduction: By entrusting your financial and tax matters to a professional, you can reduce stress and worry about complying with tax laws and regulations, allowing you to focus on running your business.
• What’s included with our Sole Trader accountants services?

  Our sole trader accountancy services include:

  1. Preparation and filing of self-assessment tax returns
  2. Assistance with registering for VAT
  3. Bookkeeping and record-keeping services
  4. Preparation of financial statements, such as profit and loss statements and balance sheets
  5. Tax planning and advice to minimize tax liability
  6. Assistance with registering for VAT
  7. Provide advice on tax and accounting legislation
  8. Business and financial advice to help grow your business

  We use industry-leading software and technology to ensure that your financial records are accurate and up-to-date. Our accountants are also well-versed in the latest accounting and tax legislation, ensuring that your business is compliant with all relevant laws and regulations.

• What Are the Advantages of Being A Sole Trader?

  Being a sole trader has several advantages, including:

  1. Flexibility: As a sole trader, you have complete control over your business and can make decisions quickly and easily.
  2. Lower start-up costs: Setting up as a sole trader is relatively inexpensive and straightforward.
  3. Keep all profits: As a sole trader, you keep all the profits from your business, after paying tax and National Insurance on them.
  4. Privacy: Your business and financial affairs are private, unlike with a limited company where information is publicly available.
  5. Simplicity: As a sole trader, you are only required to submit a self-assessment tax return, which is less complex than the accounts that a limited company must file.
  6. Personal Satisfaction: Being a sole trader can be very rewarding, as you are in charge of your own business and can see the results of your hard work.
  7. Potential for growth: Many sole traders start small and grow their businesses over time, and as they become more profitable they may consider becoming a limited company.
  8. Specializing: As a sole trader, you can choose to specialize in a specific area and become an expert in that field.

  It’s important to keep in mind that being a sole trader also comes with more responsibilities and risks, such as unlimited liability for business debts. It’s important to seek professional advice from our accountants to ensure that you are aware of all the legal and financial obligations before starting a business.

• What do I pay tax on?

  Self-Assessment income tax is paid on any income you have received that is not automatically taxed at source. This includes:

  • Income from self-employment, such as profits from a business you run
  • Rental income from property
  • Tips, commission and bonuses
  • Dividends from shares
  • Income from savings and investments
  • Income from foreign sources
  • Income from trusts and estates

  If you are a company director, you will also need to pay Self-Assessment income tax on any salary or dividends you receive from the company.

  It’s important to note that you can claim expenses against your income to reduce the amount of tax you need to pay. This may include expenses related to your self-employment, such as equipment and materials, or expenses related to renting out property, such as repairs and maintenance.

  It’s recommended to consult with our accountant to help you understand your tax liability and ensure that you are aware of all the expenses that you are eligible to claim, to reduce your tax bill.

• When do I pay my income tax?

  Self-Assessment tax returns must be filed with HM Revenue and Customs (HMRC) by 31st January following the end of the tax year. However, the payment of the tax due is not due until 31st January as well, but you have the option to make payments on account, which are payments that you make towards your next year’s tax bill.

  There are two payment on account deadlines:

  1. 31st July: Half of the previous year’s tax bill is due by this date.
  2. 31st January: The final payment, which is the remaining balance of the previous year’s tax bill plus the first payment on account for the current tax year, is due by this date.

  It’s important to note that if you fail to make payments on account on time, you may be subject to late payment penalties. Additionally, if you fail to file your Self Assessment tax return on time, you may be subject to fines.

  It’s recommended to consult with an accountant to help you understand your tax liability, make payments on account, and file your Self-Assessment tax return on time, to avoid any penalties and fines.