Sole Trader Accounting
Accountancy Services for Sole Traders
Fixed monthly fee online accountancy services for sole traders.
We provide UK services such as company accounts, tax returns, VAT returns, bookkeeping services, payroll services and self-assessments with a fresh approach, focussed on service levels and proactive advice.
Accounting for sole traders that is among the best in the industry
Sole Trader Services we Provide
To get started generate a live and accurate quote online based on your turnover and transactions – quote now.
Frequently Asked Questions
Do I legally need an accountant?
Despite common assumption, small businesses are not required by law to engage an accountant, and organisations that meet the following criteria are exempt from auditing:
1. The business must be “small,” as defined by two of the following criteria: turnover of less than £6.5 million, average employee count of less than 50, and balance sheet turnover of less than £3.26 million.
2. If a firm member seeks an audit (assuming they hold 10 percent of the share capital or 10 percent of all members for a company limited by guarantee).
The majority of businesses meet this criterion.
Why would you engage an accountant?
Despite the fact that hiring accountants is not needed, the vast majority of sole traders do so for a variety of reasons.
Simply put, an accountant does more than put your books together at the end of the year and file your VAT filings. They also do a range of other things, like:
- Getting the company registered with the necessary tax departments, such as VAT and PAYE.
- Establishing and maintaining the company payroll, as well as complying with the new RTI standards.
- Organising business correspondence (HMRC).
- Providing tax planning guidance.
- Professional references are available upon request.
- In addition, experienced accountants are more aware with the nuances of dealing with tax authorities, the right format for submitting information to HMRC, and are usually better prepared to deal with tax enquiries if they arise.
Additional Points to Consider
If you decide to go it alone, you must ensure that your accounts are kept in accordance with Generally Accepted Accounting Practices, that information is submitted on time and accurately (and in the correct format), and that the company’s statutory and financial obligations are met.
Compare the time you’ll spend preparing your accounts, bookkeeping, and dealing with HMRC to the expense of hiring an accountant for a small business or freelancer.
If saving money is your top priority, an accountant may be able to help you save both time and money by allowing you to focus on running your business rather than worrying about numbers.
When you’re a sole trader, it’s often beneficial to keep track of how much you spend and generate. With everything laid out, you can spot possibilities to boost your profit margin, such as switching suppliers or raising the price of particular products or services.
- As a sole trader, your business revenue includes all you earn from your services and sales.
- Personal income – Any income you receive from other sources, such as property and investments, that may have an impact on the amount of tax you owe.
- Expenditure – Payments for items required to run your firm efficiently.
- VAT records – If your annual turnover exceeds the VAT threshold, you must register for VAT and keep records for a minimum of six years.
- PAYE (Pay As You Earn) records – You can hire workers as a sole trader without creating a limited company, but you’ll need to keep track of your salaries via HMRC’s PAYE system.
- Grants – Any funds you receive as a result of a grant.
- You pay income tax on your net earnings after making Class 2 and Class 4 NI contributions (these are set to be reformed to remove Class 2s)
- VAT (Value Added Tax) (if your turnover is more than the threshold for the tax year)