Claudio Alegria is the Chief Operating Officer at Simply Tax Advisory, providing tailored tax returns, payroll, bookkeeping and VAT services to small businesses, individuals and startups. An accountant can help you pay taxes, keep records, and understand HMRC requirements. Get a professional accounting suite to help yourself keep track of your receipts, incoming and outgoing money.

• Self-employment means submitting self-assessments, and you need good records to do that accurately.
• They can provide valuable advice, ensure your accounts are compliant with regulations, and offer insights into improving your business’s financial health.
• The most basic level of Quickbooks comes with tons of extras and the company can make a bespoke version for you if you can’t find what you need.
• When setting up your chart of accounts, you’ll need to consider the specific accounts that are relevant to your business.
• As a sole trader, it’s essential to have a clear understanding of your cash flow.

Despite the lack of demand that you show exactly how much you spent on lunch with a client, you need every receipt you can get from the moment you start orchestrating your business. Ask for one even if the business doesn’t normally give them, such as for toll paid or a cleaning service. Built with the small business owner in mind, Freshbooks likes to keep things small and simple.

Sole Trader Vs Limited Company UK. What’s The Difference?

Managing cash flow and budgeting is crucial for the success of your sole trader business. Without proper bookkeeping, it becomes challenging to track your business expenses and income accurately. As a result, you may miss out on potential tax deductions and overstate your profits.

You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone. Unlike the rigid bookkeeping and reporting requirements for limited companies, those for the self-employed are more relaxed. Find out more about your bookkeeping responsibilities as a self-employed person, and what information your accountant needs https://www.bookstime.com/ from you. As a bookkeeper for your sole trader business, you must record the PAYE and National Insurance details accurately and keep them for three years from the tax year-end they are incurred. You can register voluntarily even if you are below the threshold, and some sole traders decide to do this because it implies you’re a more established, trustworthy business.

Automate Processes

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you. You can create also quotes and invoices, customised with your branding and full contact details, which can be emailed to customers in PDF format. accounting for sole trader Or you can spot someone who hasn’t paid their invoice on time and gently suggest that you can’t do anymore work until you’re all square. You could also consider requesting deposits and staggered payments on larger jobs, rather than waiting for the project to be completed in full before you send your bill.

There are also three tax bands, the basic, the higher rate and the upper rate. The additional upper band is 45% and applies to income of £150,000 or above. HMRC also randomly carry out random checks on business to ensure they’re complying with the taxation regulations. With clean books, streamlined financials and professional advice when needed, you can tackle self-assessment submissions confidently and efficiently. By taking these simple steps, you can rest assured that your business finance records are in good shape and will stand up to any external scrutiny if selected for auditing. For tangible assets like equipment, thoroughly track purchase invoices, in-service dates, depreciation terms, expected lifespans and disposal values.