A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up. We can help.
A sole trader is an individual running a business under their own name. Although your business is not a separate legal entity, we would recommend opening a bank account to separate your personal finances from your trading finances.
Before we get started, it is important that you register as self-employed with the HMRC and choose the name that you want to trade under.
You are required to keep record of all income and expenses for your tax return – our software can make this task quick and simple for you. All invoices can be raised and sent online. And when updating your expenses you can add a photo of the receipt – meaning less paper work to keep! You will also have a live profit and loss report – so that you know exactly how your business is doing.
To pay your taxes, you will need to be registered for Self-Assessment and Class 2 National Insurance. You can also register for VAT, get in touch with us, to find out if this will be beneficial for you.
Each year, once the financial year closes (5-Apr) we will complete your personal tax return, and send you a draft for approval. Once the return has been approved and submitted you can pay any tax due. As a sole trader, you will be required to make payments on account (Effectively paying your taxes due for the following tax year, in advance) if your tax due for the current year is more than £1,000.
All this for the low monthly fee starting from £25 (+VAT) per month.