Accountants for Sole Traders
Being a sole trader doesn’t mean you have to do it all. At VAT Recovery, we can take the headache out of being self-employed by handling all of your accounting needs.
Being a sole trader doesn’t mean you have to do it all. At VAT Recovery, we can take the headache out of being self-employed by handling all of your accounting needs.
Running a sole trader business is rewarding and liberating, but let’s face it, keeping track of your business finances can be a drag. Whether you’re just starting out or you’ve been self-employed for a while, managing income tax, expenses, payroll, and bookkeeping can feel overwhelming. At VAT Recovery, we believe that every sole trader deserves an accountant who understands their needs, saves them money, and keeps things simple. We can take on all or part of your accounts so you can fully devote yourself to your business. Contact us today to chat about your business and how we can support you.
A sole trader is anyone who runs their own business, hires their own people, provides their own equipment, and sells goods or services for a profit. If that sounds like you, congrats – you’re officially part of the self-employed club. Unlike a limited company, a sole trader business is considered the same entity as you, the business owner. This means you’re personally responsible for your business finances, including any debts or liabilities. On the plus side, all the profits are yours – minus the income tax and National Insurance, of course. For full details of what being a sole trader entails, visit the government’s website.
Admin isn’t most people’s idea of fun. However, as a sole trader, keeping accurate records is essential. HMRC needs to know exactly how much you’ve earned and spent, and it’s up to you to provide the proof. So, what exactly should you be keeping tabs on?
You’ll need to file a self-assessment tax return every year to report these figures to HMRC and pay income tax. As your dedicated accountants, we can handle all or some of this for you, making sure you’re on the right track and fully compliant.
Now for the good news: running a sole trader business means you can claim certain expenses against your income, lowering the amount of tax you pay.
But what exactly counts as a business expense? Here are a few examples:
The rule of thumb is simple: if it’s directly related to running your business, it’s probably tax deductible. If you’re unsure, we can help you identify every last allowable business expense to maximise your tax savings.
Sole traders are true go-getters. They’re independent, driven, and hands-on in every aspect of their business. Whether it’s chasing clients, managing finances, or keeping the day-to-day running smoothly, they wear all the hats. They’re totally in control, from the profits they earn to the decisions they make. But while it’s rewarding, the responsibility of running your own business can be a lot. If you are a sole trader with the weight of the world on your shoulders, know that you don’t need to go it alone. Whether you’re just getting started or you’ve been your own boss for a while, having an accountant can save you time, money, and a whole lot of stress. Tax rules change all the time, and missing a deadline or forgetting to claim an allowable expense can be costly. When you work with us, we ensure that your self-assessment tax returns, expenses, and income tax obligations are all taken care of. Our accountants for sole traders do more than just crunch the numbers. We offer tax planning advice that helps you make the most of your income and ensure you’re as tax-efficient as possible. If you think about it in terms of what we can save you, it’s an investment rather than a cost.
At VAT Recovery, we can put together a comprehensive sole trader accounting package starting at £400+VAT per month. One fee, no hidden costs or surprise bills. Just a simple monthly cost that won’t break the bank. Here’s a taster of the small business accountancy services we can provide: Tax Returns We can prepare and file your self-assessment tax return, making sure you meet HMRC’s deadlines without breaking a sweat. Bookkeeping Services Our team can effortlessly keep your books accurate and up-to-date. Our preferred platform is Xero, a cloud-based, powerful, but easy-to-use bookkeeping software. VAT If you’re eligible or required to register for VAT, we’ll handle the paperwork and ensure your returns are submitted accurately. Business expenses We’ll help you track and claim every allowable expense, ensuring you never pay more tax than necessary. Tax Planning Planning ahead and making smart decisions can save your company money. We will help you identify expenses and tax reliefs to help you keep more of your profit. Frequently asked questions about sole trader accounting
You can do your sole trader accounts yourself, but why not give yourself a break and give your business the best chance of financial success? Our qualified accountants make sure everything is done correctly, on time, and in compliance with HMRC. What’s more, they can provide valuable business advice to help you scale and achieve your ambitions.
Setting up a sole trader business is simple. It’s simply a case of registering with HMRC and starting trading. Once up and running, you must track your earnings and expenses and complete an annual self-assessment tax return.
Sole traders must pay National Insurance on top of income tax. They are responsible for reporting their earnings and paying NI themselves via the self-assessment system. If you have a personal accountant, they can do this for you. For the latest NI rates, see gov.uk.
Whether it’s better to be a sole trader or a limited company depends on your business needs and goals. Sole traders enjoy simplicity and control, but they are personally liable for any debts. A limited company offers limited liability, meaning the owner’s personal assets are protected. Depending on your gross revenue, it can also offer greater tax-efficiency. However, life as a company director comes with a ton of more admin and reporting responsibilities. If your income is growing, it may be worth considering the switch for better long-term benefits. At VAT Recovery, we can provide advice to help you make the right decision and assist you with the company registration process.
We work with a wide range of businesses on a national level and can give you the friendly and exprt accounting advice you need.
At VAT Recovery we are able to provide our clients with a wide selection of services.
You didn’t get in to business to fiddle around with payroll and HMRC forms. We offer FREE discovery calls to individuals, sole traders, limited companies and professional businesses.
