Who we help
Sole trader accounting without the unnecessary complication.
If you trade in your own name, your accounting should be proportionate to that. We keep it simple, tell you what you owe in good time and answer questions without charging by the minute.
- Sole trader accounts and Self Assessment
- Allowable expenses reviewed properly
- Tax figures known months ahead of the deadline
Overview
What sole trader accounting involves
As a sole trader you and your business are the same legal person. There are no accounts to file at Companies House and no separate company tax return. Your obligation is to keep adequate records of income and expenses and report your profit through Self Assessment.
That simplicity is a genuine advantage, and it should be reflected in what you pay for accountancy. The work is preparing a reliable set of figures, claiming what you are entitled to and filing on time.
What you get
How we support sole traders
Everything you need to stay compliant, and nothing you do not.
Annual accounts
A clear summary of income, expenses and profit for the year, prepared from your records.
Self Assessment return
Your return prepared, checked with you and filed, with the tax due explained in plain terms.
Expenses review
We check what you can properly claim, including use of home, mileage and equipment, and what you cannot.
Payment reminders
Reminders for both the January and July dates, with the amounts confirmed well in advance.
Questions answered
Routine questions during the year are part of your fee rather than something billed separately.
More detail
Claiming expenses correctly
The rule is that an expense must be incurred wholly and exclusively for the purposes of the business. That sounds restrictive but it accommodates a good deal, including a proportion of costs used partly for business where the split can be justified.
Areas we look at as standard
- Use of home as an office, using either a simplified rate or an apportionment of actual costs
- Vehicle costs, whether by mileage rate or a proportion of running costs
- Equipment and tools, and whether they are claimed in full or over time
- Professional subscriptions, training and insurance relevant to your trade
- Telephone and internet costs used for business
- Bank charges and interest on genuine business borrowing
Setting money aside
The most common difficulty sole traders face is not the return, it is having the money ready when the bill arrives. Moving a fixed proportion of everything you receive into a separate account works well, provided the percentage is reviewed when your profits change.
When we prepare your return early, you get your tax figure months before it is due. That is the single most useful thing an accountant can do for a sole trader’s cash flow.
Questions
Common questions
If something is not covered here, ask us directly and we will give you a straight answer.
You are not legally required to have one as a sole trader, though many banks require it in their terms if the account is used for trading. What matters practically is separation: using one account consistently for business makes your records far easier and cheaper to prepare.
It depends on your profits, whether you can leave money in the business, the level of risk in your work and your appetite for extra filing. It is worth reviewing once profits become consistent, and we are happy to model both structures against your actual figures.
It changes what goes on the return rather than whether you need one. Employment income, tax already deducted and any benefits are reported alongside your self-employment profit, and the two are brought together to arrive at your overall position.
For a straightforward sole trade, a consistently maintained spreadsheet plus your bank statements and receipts is often enough. If you become VAT registered, digital record keeping requirements apply and you will need suitable software.
A simple business deserves a simple fee.
See an indicative monthly figure for sole trader accounts and Self Assessment in about two minutes.