Accountants for Sole Traders
Being a sole trader doesn’t mean you have to do it all. At Smooth Accounting, we can take the headache out of being self-employed by handling all of your accounting needs.
SevenStars Accounting – Proud to Support Sole Traders
Running a sole trader business is incredibly rewarding and offers great freedom, but let’s be honest, diligently keeping track of your business finances can become a chore. Whether you are just launching your business or have been self-employed for a while, managing income tax, expenses, payroll, and core bookkeeping can feel daunting.
At SevenStars Accounting, we strongly believe that every sole trader deserves an accountant who truly understands their specific requirements, actively saves them money, and keeps all processes straightforward. We can manage all or a portion of your financial accounts so you can dedicate your full attention to generating income for your business.
Contact us today to discuss your business needs and how we can offer tailored support.
What is a self-employed sole trader?
A sole trader is simply anyone who operates their own business, handles their own hiring, secures their own equipment, and sells either goods or services for the purpose of making a profit. If that description matches you, congratulations – you are officially a member of the self-employed community.
Unlike a limited company, a sole trader business is legally viewed as the same entity as you, the business owner. This means you are personally accountable for your business finances, including any potential debts or financial liabilities. On the positive side, all the generated profits belong entirely to you – after deducting Income Tax and National Insurance contributions, of course.
For complete details on the responsibilities of being a sole trader, visit the government’s website.
What records do you need to keep?
Administration is not most people’s favorite activity. However, as a sole trader, maintaining accurate records is absolutely fundamental. HMRC must know precisely how much you have earned and spent, and it is solely your responsibility to provide supporting proof.
So, what exactly should you be diligently tracking?
Invoices for all services or products you have successfully provided.
Business expenses, which include travel costs, office supplies, and advertising fees.
A meticulous record of your overall profits.
You are required to file a self-assessment tax return annually to accurately report these figures to HMRC and pay your Income Tax. As your dedicated accountants, we can handle all or part of this process for you, ensuring you are compliant and moving along the correct financial path.
What business expenses can sole traders claim?
Now for the welcome news: running a sole trader business allows you to claim specific expenses against your total income, which effectively lowers the amount of tax you are liable to pay.
But what exactly qualifies as a business expense? Here are a few examples:
Travel costs (such as fuel for business use, parking charges, or public transport fares).
Office supplies (stationery, computer hardware, and mobile phone bills).
Advertising (website hosting costs, printed brochures, social media management, etc.)
Professional fees (such as the cost of accountancy services).
The guiding principle is straightforward: if the expense is directly connected to the operation of your business, it is highly likely to be tax deductible. If you have any uncertainty, we can help you identify every last allowable business expense to fully maximize your tax savings.
Is it worth having an accountant as a sole trader?
Sole traders are true self-starters. They are independent, highly motivated, and involved in every single aspect of their operation. Whether the task is pursuing payments from clients, managing their finances, or simply keeping the daily tasks running smoothly, they wear every necessary hat. They maintain total control, from the profits they generate to the strategic decisions they make.
But while the rewards are great, the sheer responsibility of managing your own business can be enormous. If you are a sole trader feeling the weight of the world on your shoulders, remember that you do not have to handle everything alone. Whether you are just commencing your journey or have been your own boss for some time, engaging an accountant can save you crucial time, save you money, and significantly reduce your stress levels.
Tax rules undergo constant modifications, and missing an official deadline or failing to claim a legitimate allowable expense can be financially detrimental. When you partner with us, we guarantee that your self-assessment tax returns, expense tracking, and Income Tax obligations are all professionally managed and taken care of.
Our accountants for sole traders do much more than simply process your figures. We offer bespoke tax planning advice that empowers you to get the absolute most out of your income and ensures you operate with maximum tax efficiency. If you consider the value in terms of what we can save you, it is clearly an investment rather than merely a cost.
Our Sole Trader Accounting Services
At SevenStars Accounting, we can assemble a comprehensive sole trader accounting package starting at $£400$ + VAT per month. One transparent fee, with absolutely no hidden charges or surprise bills. Just a clear monthly cost that is affordable for your budget.
Here is a brief summary of the small business accountancy services we are equipped to provide:
Tax Returns: We can professionally prepare and file your self-assessment tax return, ensuring you easily satisfy HMRC’s deadlines without feeling any stress.
Bookkeeping Services: Our specialist team can effortlessly keep your accounts accurate and continuously up-to-date. Our preferred platform is Xero, a cloud-based, powerful, yet user-friendly bookkeeping software.
VAT: If you meet the criteria or are legally required to register for VAT, we will manage all the complex paperwork and ensure your returns are submitted accurately and on time.
Business Expenses: We will actively assist you in tracking and claiming every allowable expense, ensuring you never remit more tax than is legally required.
Tax Planning: Forward planning and making smart decisions now can save your company significant money later. We will help you strategically identify expenses and tax reliefs to help you retain a higher percentage of your profit.
Frequently Asked Questions About Sole Trader Accounting
Who can prepare sole trader accounts?
You certainly have the option to manage your sole trader accounts yourself, but why not give yourself a much-needed break and give your business the best possible opportunity for financial success? Our qualified accountants ensure everything is completed correctly, meets all deadlines, and is fully compliant with HMRC. Furthermore, they can provide invaluable business advice to help you scale your business and achieve all your ambitions.
How do you set up a sole trader business?
Establishing a sole trader business is quite straightforward. It is simply a matter of registering with HMRC and commencing your trading activities. Once you are operational, you must meticulously track your earnings and expenses and complete an annual self-assessment tax return.
Do sole traders need to pay National Insurance contributions?
Sole traders are required to pay National Insurance contributions in addition to their Income Tax. They are personally responsible for correctly reporting their earnings and remitting the NI payments themselves through the self-assessment system. If you engage a personal accountant, they can handle this responsibility for you. For the most current NI rates, see gov.uk.
Is it better to be a sole trader or a limited company?
Whether it is more advantageous to operate as a sole trader or a limited company depends entirely on your specific business requirements and long-term goals. Sole traders benefit from operational simplicity and complete control, but they bear personal liability for any business debts.
A limited company provides limited liability, meaning the owner’s personal assets are legally protected. Depending on your total gross revenue, it can also offer greater tax efficiency. However, the life of a company director comes with significantly more administrative and statutory reporting responsibilities.
If your income is steadily increasing, it may be worthwhile to consider switching to a limited company for the better long-term benefits. At SevenStars Accounting, we can provide expert advice to help you make the right structural decision and assist you with the entire company registration process.
How much do accountants for sole traders cost?
At SevenStars Accounting, we offer an Income Tax return service for sole traders, which is priced at $£400$ + VAT per month.
Why choose us for your business bookkeeping services?
We're approachable — we understand that accounting can be intimidating and daunting, but our friendly team are always on hand to offer advice and peace of mind.
We're experienced — with many years of general practice experience, there's no query we can't handle.
We're cost effective — not only can we save you money, but we also believe in offering an excellent service at an excellent price.
Give yourself more time to spend on your business by letting us handle your bookkeeping efficiently and cost-effectively.
