SOLE TRADER ACCOUNTS

We love working with new or small businesses!

What are the accounting requirements for sole traders?

A UK business not incorporated (trading as a limited company) is usually referred to as a sole trader.

Sole traders have several accounting and tax obligations to HMRC. These include:

1. General Accounting Obligations
   Keep accurate and honest accounting records of sales, expenses, assets and liabilities. Accounting records can be kept in either cash or accruals basis.

2. Calculate Income Tax and File your Self-Assessment Tax Return
   Sole traders should prepare and file an annual income tax return, named a self-assessment tax return. These returns should include profit figures from your sole trader business and details of any other income.

3. Pay Income Tax Due
   Any income tax and national insurance owed on income should be paid to HMRC before the relevant deadlines.

How can an accountant help me?

An accountant will help you to meet your HMRC obligations, provide needed accounting support and advice, help you to reduce your income tax bill, prevent accounting errors, fines, and penalties, explain accounting terms and tax rules that you may not understand, and provide reminders of outstanding and due tasks.

If you are concerned about doing your self-assessment tax return, getting an accountant would be wise.

Which services does SM Accounting offer sole traders?

• Full Sole Trader Year-End Package - everything you need for year-end!
  
  What’s included?
  Compiling sole trader accounts (preparing year-end accounts as per UK standards, cash or accrual basis)
  Tax advice
  Preparing and filing of Self Assessment Tax Return
  Unlimited support by email - ask as many questions as needed!
  
  What do we need from you?
  Access to your bookkeeping software (Sage, QuickBooks, Xero, KashFlow or any other) or your bookkeeping files (PDFs, Excel, etc.)
  Your unique tax reference (UTR). If you don’t know your UTR, we can request this for you
  And that’s it!
  
  How long does it take?
  We can compile accounts and prepare your self-assessment from start to draft within two weeks. We can make exceptions and prepare quicker for accounts that are nearing or overdue HMRC deadlines
  
  Does this service cover everything I need?
  Yes. This service will cover your annual filing and tax obligations with HMRC
  
  How much does this package cost?
  Our prices start from £150 per year!
  
  

• Full Sole Trader Year-End Package + Monthly Bookkeeping
  
  What’s included?
  Everything above + monthly bookkeeping services with monthly profit and loss and management accounts.
  
  What do we need from you?
  Access to your bookkeeping software if you are subscribed to any. If not, that is fine.
  Bank statements and copies of invoices on a monthly or quarterly basis.
  
  Does this service cover everything I need?
  This package is the ultimate way to outsource your bookkeeping and accounting. We will cover everything needed and provide the best support.
  
  How much does this package cost?
  Our prices start from £18.50 per month!