Sole Trader Tax Accountant

The responsibilities that come with being a Sole Trader are different to those of a company director who runs a limited company. You run your business as an individual and keep all business profits after tax has been paid on them. You are also solely responsible for losses that your business may make.

There are also certain HMRC rules and regulations that must be followed:
• Keep records of all business sales and expenses
• Submit a Self-Assessment Tax Return each year
• Pay Income Tax due on profits made
• Pay National Insurance
• Register for VAT if your turnover is expected to be more than £83,000 a year

There are many advantages to engaging an accountant to manage or oversee your sole trader accounts, this includes:

• Simplify the process – our accountants deal with a spectrum of business owners daily and are experts at taking the jargon out of the process and utilising the latest accounting software
• Make you tax-efficient – we’re fully aware of what is and isn’t tax-deductible, are always abreast of the latest HMRC rules and regulations and can undertake regular tax efficiency reviews
• Avoid costly mistakes – failing to file your Self-Assessment tax return on time or report accurately can result in fines; not with us on board!

We typically deliver the following to our sole trader clients:

• Self-Assessment registration
• Advice on set up
• Preparation and submission of self-assessment tax return
• Bookkeeping Services
• Tax planning advice to help maximise tax efficiency
• Preparation of financial statements
• Preparation & submission of quarterly VAT returns
• Preparation and submission of PAYE
• Assistance with HMRC records checks
• Reminder services for all deadlines and payments
• Own dedicated accountant with direct dial

• Total control – You have total control over the business. Decisions can be made quickly and easily, from accountancy and financial decisions to general business decisions.
• Easy to change to another trading identity. It is relatively easy to change your trading identity from that of a sole trader to a limited company.
• Keep the profit – As the owner of the business, all the profit belongs to you.
• Business affairs are private – When you run an unincorporated business your accounts are not made available to the public

• You are personally liable and accountable for all your businesses debts – Should your business fail you could end up losing your personal assets such as your home, car, etc.
• Can be difficult to raise finance – When you run a small unincorporated business, banks will not lend you large sums and you may find raising finance for the business is very difficult.
• Can be difficult to enjoy economies of scale – Smaller business often find that they cannot buy supplies in bulk and do not enjoy the same discounts as larger businesses.

• Money you earn from employment
• Profits you make if you’re self-employed – including from services you sell through websites or apps
• Some state benefits
• Most pensions, including state pensions, company and personal pensions and retirement annuities
• Rental income (unless you’re a live-in landlord and get less than the rent a room limit)
• Benefits you get from your job
• Income from a trust

• The tax year runs from the 6th April to the 5th April the following year.
• The first payment on account for the tax year ending the following 5 April is due on the 31st January.
• If you have a second payment on account due for the tax year ending the previous 5 April it is due for payment on the 31st July.
• It is worth remembering that not everyone has to pay these payments on account.