Being a sole trader is one of the simplest ways to operate as a self-employed business, but it doesn’t mean you can ignore your accounts and tax responsibilities. If your business grows, you’ll also need to know when it might be time to transition to a Limited Company. That’s where our sole trader accounting services come in. A dedicated accountant for self-employed individuals helps reduce your workload and keeps everything running smoothly.
We’ll ensure your finances remain tax-efficient as a sole trader and monitor whether this structure continues to suit your business. Specialising in small business accounting, we help you stay on top of your finances and make informed decisions for future growth.
At Oakstone Accountants, you’ll work with a team of accountants who take the time to understand you and your business. This allows us to deliver a tailored accounting solution that meets your goals whether that’s growing your business, improving tax efficiency, or simply streamlining your accounting processes.
Keeping up with your monthly accounts can be tricky. Whether it’s sorting through stacks of receipts or separating personal and business expenses, we’re here to help. We’ll manage your monthly accounts so you can focus on running and enjoying your business.
For many self-employed business owners, filing an annual self-assessment tax return is the most stressful part of the year. At Oakstone Accountants, we take the hassle off your plate. Your dedicated accountancy team will handle your tax filing with HMRC, ensuring your business stays fully compliant with current regulations.
Your team of accountants will not only handle your monthly accounts but also provide financial advice and guidance whenever you need it. If you have questions or concerns about your sole trader business, you can reach your accountant by phone or email for quick, informative support.
While our goal is to take full responsibility for managing your sole trader accounts, we make sure you’re never left in the dark. At the end of each month, you’ll receive a detailed review of your accounts to keep you informed about your financial situation.
When you use our sole trader accounting services, you get free access to our automated invoicing software, letting you send invoices with just a click. If creating, sending, and chasing invoices is taking up too much of your time, our software makes the process simple and efficient.
Working with us is incredibly easy. You can submit your receipts and invoices through our online accounting software, email them directly to your accountancy team, or send them for free each month using our Purple Envelopes scheme. In short, the choice of how you manage your receipts and invoices is completely yours.
It doesn’t matter if you’ve just started your self-employed business—there’s no minimum size or turnover required to work with us. And as your business grows, our services will grow with you. Whether you hire staff, increase your rates, or transition to a limited company, we’ll be here to support every step of your journey.
A sole trader is a business structure where you operate as an individual, rather than through a Limited Company. This means there is no legal distinction between you and your business.
While there’s no legal requirement to maintain a separate business bank account, we highly recommend doing so.
As a sole trader, you pay tax on the net profits your business generates. Any money you withdraw from the business (drawings) isn’t taxed like a salary, nor are these withdrawals considered tax-deductible expenses.
Setting up as a sole trader is straightforward. You need to inform HMRC within 12 weeks of receiving your first income, though we recommend notifying them as soon as you decide to start trading.
By doing so, you’ll register for self-assessment as a sole trader. HMRC will provide your Unique Tax Reference (UTR), which you should use in all communications with HMRC and when submitting your tax return.
Once that’s done, you’re ready to start trading simple as that!
Being a sole trader is one of the simplest ways to start your own business. You just register with HMRC, choose a business name, and you’re ready to go!
Unlike a Limited Company, you won’t need to handle extra administrative tasks like submitting company accounts to Companies House, filing a confirmation statement, or appointing directors.
However, you still need to keep accurate records of all income and expenses in an HMRC-approved format. We recommend doing this digitally, especially with Making Tax Digital coming into effect for sole traders in 2023. With a service like ours, we can manage all of this for you.
Being a sole trader also offers more privacy. Unlike Limited Companies, which must submit accounts and director information to Companies House for public access, sole traders only submit information to HMRC visible only to you, HMRC, and your accountant.
One of the main drawbacks of being a sole trader is the personal risk involved, known as unlimited liability.
Legally, there’s no distinction between you and your business. This means that if your business incurs debt or faces legal action, you are personally responsible rather than a separate company.
Depending on your profits, operating as a sole trader may not always be the most tax-efficient option. It’s worth consulting an accountant to determine if this structure is right for you.
Additionally, some companies may only offer contracts to Limited Companies. If you’re bidding for work or submitting a tender, check whether they accept sole traders.
