Sole trader accounts
and tax support
Practical accountancy support for sole traders, freelancers, contractors and self-employed people who want clear answers, better records and fewer surprises around tax.
Whether you are newly self-employed, already established, growing your business or wondering if it is time to become limited, we can help you understand what is required, what applies to you and what to think about next.
Sole trader Support
Clear support for self-employed people
A sole trader is someone who runs a business as an individual, rather than through a limited company. You may describe yourself as self-employed, a freelancer, a contractor, a tradesperson, a consultant or simply someone running your own business.
As a sole trader, you are responsible for reporting your income to HMRC, keeping proper records and paying the tax due through your personal tax return.
For some people, this can be fairly straightforward. For others, especially where there is stock, VAT, staff, higher profits or more complex records, it can be worth preparing fuller accounts so the figures are clear and nothing important is missed.
Understand what is required
We will explain what records you need, what needs to go on your tax return and when things need to be done
Plan for your tax
We can help you understand your likely tax position, payments on account and why getting your information in early makes a real difference.
Keep better records
We can support you with bookkeeping, cloud software and Making Tax Digital, so your records are easier to manage through the year.
Accountably support
for
Sole Traders
How we support sole traders.
Support can be kept simple, or it can grow as your business grows. We will look at where you are now, what you need help with and what level of support makes sense for your business.
We can help with:
Personal tax return
Preparing and submitting your annual personal tax return, including your sole trader income.
Sole trader accounts
Preparing accounts where helpful, so you can see your profit, understand your figures and keep stronger working records behind the tax return.
Bookkeeping support
Helping you understand what records to keep, how to code items correctly and how to stay on top of the day-to-day bookkeeping.
Cloud bookkeeping and
Making Tax Digital
Support with digital bookkeeping systems and MTD, especially as income grows and digital record keeping becomes more important.
VAT, staff and growing complexity
Support where your sole trader business has VAT, employees, stock or more detailed accounts.
Tax planning and business structure
Advice on tax planning, payments on account and whether it may be time to discuss becoming a limited company.
Tax support before the deadline arrives
For many sole traders, the biggest stress is not the tax return itself. It is the surprise of the tax bill, especially when payments on account are involved.
Payments on account can feel confusing at first. They are based on HMRC assuming your profits will be similar in the following year, which means the first year they apply can feel like a bigger jump than expected.
Getting your tax return information in early gives you more time to understand what is due, plan for payments and make sensible decisions before the January deadline is too close.
Common areas we help you understand;
- How much tax to put aside
- Why payments on account happen
- Whether payments on account can be reduced
- What expenses can be claimed
- What records need to be kept
- How bookkeeping affects the tax return
- When tax planning may be useful
- Whether limited company status should be considered
Sole trader Support
Bookkeeping, records and
Making Tax Digital
When you are busy doing the work, bookkeeping can easily get pushed to one side. The trouble is, the longer it is left, the harder it becomes to remember what things were for, what can be claimed and what needs to be corrected.
Good records do not just help with the tax return. They give you a clearer view of how your business is doing.
We can help you get clearer on what records you need to keep, how to organise your information and how to use bookkeeping software in a way that works for your business.
We can help with...
- What records you need to keep
- What counts as a business expense
- How to organise receipts and invoices
- How to use cloud bookkeeping software
- Where items go in the software
- What Making Tax Digital may mean for you
- How to avoid everything becoming urgent near the deadline
Sole Trader or Limited Company?
You do not always need to become a limited company when you start a business.
For some people, staying as a sole trader is simpler and more cost-effective, especially if the business is small, part-time or still developing.
For others, becoming limited may be worth discussing because of tax planning, business risk, higher profits or the need to protect personal assets.
There is no one-size-fits-all answer. Two people can earn similar amounts and still need different advice because their wider situation is different.
Choosing the right business structure can affect your tax, liability and future options.
Here’s a simple guide to when sole trader status may still be the best fit and when it might be time to consider a limited company.
Why Sole Trader May Make Sense
Sole trader status may be the better fit
if your business is smaller, part-time, still developing or
if limited company compliance
costs would outweigh the benefit.
This may apply if:
- Your business is still quite small
- You are building things gradually
- Your profits are still within a lower tax band
- You want to keep the structure simple for now
- Limited company costs are not yet worthwhile
- Your business is part-time or alongside other income
Limited May Be Worth Discussing
A limited company can offer tax benefits and protection, but it also comes with more responsibilities and costs. It’s worth exploring if your business is changing.
This may apply if:
- Your profits are increasing
- Your tax bill feels harder to manage
- You are moving into a higher tax band
- Your business has more risk attached to it
- You are taking on staff or buying equipment
- To protect your private assets
Not sure which structure is right for you? We can look at your situation and explain your options clearly,
so you are not relying on guesswork or advice from someone down the pub!
FROM SIMPLE TAX RETURNS TO GROWING BUSINESSES
Working Together
Some sole traders need a straightforward annual tax return.
Others need accounts, bookkeeping support, VAT help, tax planning, software guidance or advice as the business grows.
Before we begin, we will talk through where you are now, what support you need and what is included. That means you know what to expect, what information we need from you and how we can help during the year.
Clear Responsibilities
We will explain what we do, what you need to provide and what records need to be kept.
Practical Answers
If you have questions about expenses, bookkeeping, tax or software, you can ask rather than sit with the uncertainty.
Support As Things Change
If your income grows, your records become more complex or limited company status becomes worth discussing, we can help you understand the next step.
What Happens Next?
Getting started with sole trader support
You do not need to have everything perfectly organised before you speak to us. Start with where you are, and we will help you understand what support would be useful.
Tell us where you are now
Whether you are newly self-employed, established, growing or trying to get your records back in order, we will ask the right questions.
We’ll talk through what you need
We will look at your business, your records, your tax position and any other income that may affect your return.
Move forward with clear expectations
You will understand what is required, what support is included and what happens next.
