Sole Trader Accounting
As a Sole Trader you are classified as self-employed by HM Revenue and Customs (HMRC) whether you sell goods or services. You also have to register with HMRC and certain rules and regulations will apply, all of which your account manager will handle so you can rest assured you will never miss a deadline.
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- Personal account manager who handles everything
- Quick and simple to get started
- Guaranteed we’ll never miss a deadline
- We take away the pain off dealing with HMRC
Focus on your business. And we’ll focus on the numbers.
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The first coffee is on us to understand your needs and does not require any commitment.
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We know one size doesn’t fit all, so let our lovely experts find the right solution for you.
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Dot the i’s, cross the t’s and we’ll take care of the rest.
Frequently asked questions
Do I need to register for VAT?
You do not have to register for VAT if your business turnover is below £85,000. Regardless of whether they meet the turnover threshold or not, many Sole Traders will register for VAT as it will allow them to reclaim VAT on items purchased by their business. VAT registration can also allow, where relevant, entry into the flat rate VAT scheme and the benefits attached to it.
It is crucial that you take advice about VAT registration so speak to one of sole trader experts to make sure we set up the correct VAT structure for you.
What are the responsibilities of a sole trader?
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 additional requirements from HMRC that must be followed including maintaining records and an annual submission of a tax return.
What are the advantages of a sole trader?
Becoming a Sole Trader is the simplest way to get your new business off the ground. You can start trading immediately, subject to any industry specific licences or insurances you might be required to have.
As a Sole Trader, you will have complete control over your business and its finances. You can adapt quickly to any changes in your business.
If you run your business as a Sole Trader, no distinction is made between your personal and business finances. It is therefore crucially important for you to realise that should anything go wrong, you will be personally liable for any business debts. Get in touch with one of our account managers to help see if a sole trader structure is right for you.
Do I need a separate bank account ?
While not essential we strongly advise that you keep your personal and business finances separate. This will mean you will have transparency across your business and a clear record of all business transactions.
Keeping your business affairs separate from your personal finances will ultimately save you a lot of administration time and effort.
What are the responsibilities of a sole trader?
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 additional requirements from HMRC that must be followed including maintaining records and an annual submission of a tax return.
What are the advantages of a sole trader?
Becoming a Sole Trader is the simplest way to get your new business off the ground. You can start trading immediately, subject to any industry specific licences or insurances you might be required to have.
As a Sole Trader, you will have complete control over your business and its finances. You can adapt quickly to any changes in your business.
If you run your business as a Sole Trader, no distinction is made between your personal and business finances. It is therefore crucially important for you to realise that should anything go wrong, you will be personally liable for any business debts. Get in touch with one of our account managers to help see if a sole trader structure is right for you.
Do I need a separate bank account ?
While not essential we strongly advise that you keep your personal and business finances separate. This will mean you will have transparency across your business and a clear record of all business transactions.
Keeping your business affairs separate from your personal finances will ultimately save you a lot of administration time and effort.
Do I need to register for VAT?
You do not have to register for VAT if your business turnover is below £85,000. Regardless of whether they meet the turnover threshold or not, many Sole Traders will register for VAT as it will allow them to reclaim VAT on items purchased by their business. VAT registration can also allow, where relevant, entry into the flat rate VAT scheme and the benefits attached to it.
It is crucial that you take advice about VAT registration so speak to one of sole trader experts to make sure we set up the correct VAT structure for you.
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