Accountants for Sole Traders
Our sole trader accounting services that perfectly fit your business
We’ll take care of managing your sole trader accounts, enabling you to make informed financial choices and expand your business. Our accountancy package begins at £25+ VAT per month, providing you with monthly reviews that offer valuable guidance to enhance your business’s efficiency.
What is a Sole Trader?
As a sole trader, you have complete authority over your business, enabling you to make important financial and business decisions quickly and effortlessly. The advantage is that you retain all the profits after paying taxes. However, the disadvantage is that you bear full responsibility for the success or failure of your business venture and are personally liable for all its debts.
You must register as a sole trader if any of the following circumstances apply:
1. You earned more than £1,000 from self-employment between April 6, 2020, and April 5, 2021.
2. You wish to make voluntary Class 2 National Insurance payments to qualify for benefits.
Once you commence working for yourself, you will be considered a self-employed “Sole Trader,” regardless of whether you have notified HMRC.
How do I register as a sole trader?
In order to complete the registration process, you are required to inform HMRC that you will be submitting a Self-Assessment tax return. This can be done either by registering online or by printing and mailing the appropriate form obtained from HMRC’s website.
What follows next?
Once you inform HMRC about your intention to work as a sole trader, they will provide you with a Unique Taxpayer Reference (UTR) and create an online account specifically for your Self-Assessment needs.
Shortly thereafter, HMRC will send you a letter containing an activation code for your online account. This will allow you to access information regarding your tax status, such as your previous tax payments, tax code, and the deadline for filing your tax return.
Advantages & disadvantages of being a sole trader
In the UK, many self-employed professionals choose to work as sole traders. A sole trader is a self-employed individual. Most potential self-employed choose sole traders or limited companies. Listed below are the benefits and drawbacks of being a sole trader.
Advantages
Faster decisions
As a sole trader, being both the owner and manager of your business, you enjoy the advantage of making all decisions without the complexity that larger businesses face. In contrast, larger businesses contend with various levels of management, owners, and stakeholders, each with their own distinct objectives, which can complicate the process of arriving at simple decisions.
Cheaper accounting
While sole traders are obligated to prepare a profit and loss account, limited companies have additional requirements, such as completing a balance sheet and cash flow statement. Consequently, accountants charge lower fees for their services to sole traders compared to limited companies due to the reduced workload involved.
Keeps all profits
A sole trader retains all the profits they generate, after taxes, without having to pay Corporation Tax, and typically without the obligation to compensate employees.
More privacy
Limited companies are required to register with Companies House, which results in certain information becoming publicly accessible, thereby preventing them from keeping such details confidential.
Disadvantages
Self-Assessment return SA302 sole traders
Because sole traders are not legally separate from their businesses, they are personally liable for any debts incurred. Therefore, the sole trader will lose income, but they will also owe money.
Can be difficult to get large clients
It’s challenging to secure work from big clients because many businesses, especially larger ones, see sole traders as small and a liability. Although a limited company can be owned and managed by one person, it is often more prominent.
No sick pay
If a sole trader is sick, they will not be paid, and their business will not provide the service they agreed to do for another person or supplier. When you are unable to provide your services, clients may look elsewhere.
Still needs to do some accounting
Sole traders need to keep receipts, pay tax (and VAT if they earn over £83,000) and National Insurance. We are specialist sole trader accountants who will do most of the work for you for a fixed monthly fee.
Need to do a corporation tax return for your company?
Contact us now and have a conversation with our skilled tax advisors. Our aim is to simplify the entire process of filing your company tax return, ensuring a hassle-free experience for you.
Our accounting software partners that will grow your business
Our all-inclusive bundles for Sole Traders encompass all the essential elements, spanning from online software to extensive accountancy assistance.
By virtue of our collaboration with Xero, Freeagent, and QuickBooks, managing your accounting records becomes significantly more convenient. Moreover, if you are new to these online platforms, we offer personalized training sessions.
Effortlessly monitor your financial matters from any mobile or desktop device. Seamlessly send invoices, import bank statements, log expenses, and access real-time updates on your accounts and tax liabilities.
Our sole trader accounting service
- VAT Registrations & Returns
- Payroll Registrations & RTI Returns
- Pensions & Auto-Enrolment
- Bookkeeping
- Tax Investigation Service
- Business Plans
- Management Accounts
Responsibilities of a sole trader
Here are some of the responsibilities that a sole trader has to look after.
- You must pay Income Tax on any profits of your business
- Pay your National Insurance
- Keep all records of your expenses and sales
- Register for VAT if you expect your takings to be more than £85,000 a year
- Your businesses debts
- Pay bills for anything related to your business
- If you are a contractor or sub-contractor in the construction industry you will need to register with the Construction Industry Scheme (CIS)
Complete sole trader
accounting service built for you
Dedicated accountant
Our Sole Trader accounting packages include a dedicated accountant to ensure you receive the best possible service. They will spend the time necessary to learn about your business and provide you with the best advice possible.
Self-Assessment return SA302 & sole trader accounts
We will submit your Tax Returns and Sole Trader Accounts to HMRC on your behalf. We will advise you on tax rates and payment dates. We also help our clients prepare financial reports that will support business decisions.
Award-winning accounting software
We offer market-leading software. Choose from award-winning UK cloud accounting suppliers: FreeAgent, Xero, or QuickBooks. Even better, the cost of this software is included as part of your package.
Never miss a deadline
As your dedicated accountants, we will ensure that you never miss a deadline. We will send out automated reminders and place follow up calls about when to file or pay your taxes.
Tax planning & advice
We believe in providing a service that adds value. Therefore, regular tax efficiency reviews are standard in our Sole Trader accounting packages to help you save money on taxes.
Fixed price – no surprises
When you call, need help, or advice about your accounts or other tax matters, you will not be charged extra as part of our fixed monthly packages.
Trusted freelancer accountants
Taxcellent, a prominent provider of general accounting and tax services, caters to numerous freelancers spanning various industries and sectors. Our accounting solutions are specifically designed to meet the unique requirements of the freelance sector.
As esteemed partners of Xero and FreeAgent, we can grant you access to acclaimed accounting software. This software not only ensures compliance from start to finish but also liberates your time, allowing you to concentrate on obtaining more freelance opportunities. Moreover, we provide fully transparent mixed monthly packages to meet your needs.
Our choice of award-winning accounting software for freelancers
Through our partnerships with the leading cloud accounting software providers, we ensure that you have full visibility into the performance of your business. Our aim is to offer the finest solutions that alleviate administrative tasks, giving you more time to dedicate to your freelance work.
Furthermore, our premium accounting software, including Xero, FreeAgent, and QuickBooks, is included in all our packages as a standard offering. Additionally, upon request, we are pleased to provide complimentary one-on-one training sessions for your convenience.
Complete tax & accounting advice
At our firm, we take great pride in providing personalized tax planning solutions to our freelance clients, taking into account their unique business and personal financial circumstances, goals, and aspirations. We understand that a “one size fits all” approach is inadequate because every individual contractor in the UK has their own specific requirements.
Our services aim to assist UK contract workers in transitioning to self-employment or establishing a limited company. We also offer guidance on eligible expenses that can be claimed. Our goal is to provide the necessary advice and support to help you take advantage of available tax breaks, ensuring that you always pay the correct amount of tax.
When you choose our services, you can expect the following benefits:
– Clear understanding of how your take-home pay is affected and the factors influencing it.
– Evaluation of the most suitable VAT scheme for your business.
– Identification of expenses that qualify for tax relief, helping you minimize your tax obligations.
– Assistance in managing the administrative burden of accounting and taxation.
– Expert advice on IR 35 regulations.
– Tax planning considerations regarding Dividend versus Salary.
– Handling of statutory accounts, tax matters, VAT, payroll, and more.
Why Choose Us
Dedicated accountant
Our firm provides customized accounting services to clients, with a focus on building long-term relationships. Each client has a dedicated point of contact to receive high-quality support and personalized guidance.
Transparency
Transparency is key in our billing policy, with all-inclusive monthly fees at a competitive, fixed price for our clients' peace of mind.
Accredited accountant
Our accredited client managers are experts in Xero, Quickbooks, and FreeAgent, providing our clients with accurate financial information for informed decision-making.
Forward-Thinking Solutions
We bring clients the latest technology and tools to automate procedures, improve cash flow, and optimize tax planning processes.
Tech-Driven Accounting Firm
Simplify your accounting processes with our tech-driven solutions. We offer a range of accountancy packages and systems for easy record-keeping and information sharing.
Value add service
We offer cash flow forecasting, legal services, and insurance to optimize your financials and simplify business operations.
Get your business off
to the best start
to the best start
Need to do a corporation tax return for your company?
Contact us now and have a conversation with our skilled tax advisors. Our aim is to simplify the entire process of filing your company tax return, ensuring a hassle-free experience for you.