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You Do Not Have To Do This Alone with Our Accountants for Sole Traders

If you’re in business for yourself, whether as a sole proprietor or otherwise, you must preserve business records and work with your sole trader accounts. 

It is a common misconception that sole proprietors either work alone (though they certainly can) or have no workers (though you might not). 

Some sole operations may appear like large corporations since they employ hundreds of people– but that’s usually not the case.

The term “sole trader” refers to your business’s tax status and, by extension, the accounts you’ll need to keep.

Self-employment is another common word for a sole trader business status (though that term can also apply to single-person companies).

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NOTE: One must note that being self-employed does not mean you do everything independently.

Whether you own a large corporation or a small business, there are things you can’t ever do by yourself. These include marketing, accounting, and tax filing, specifically, tax planning to optimise your taxes.

Accountancy is a whole new profession on its own. Despite the many tax digital accounting software rampant today, you will still need a dedicated accountant to handle your business account, business expenses, payroll services, and much more.

If you are a sole proprietor looking for an accountant or maybe want to switch accountants, we’ve got good news for you.

You can now expand your company while maintaining financial security.

Let our expert sole trader accountants help your business.

Get in touch with Pearl Lemon Accountants right away.

Setting Up As A Sole Trader

You should look at starting as a sole trader if you are self-employed or plan to become self-employed soon. The UK Government claimed that 76% of British small firms were sole traders. 

Essentially, a sole trader is someone who works by themself.

When you register as a sole trader, you agree to incur personal financial risk.

Since your company is not a corporation or other legal body, you would be responsible for paying off any debts or defending yourself in court should your company ever be sued.

In contrast to the owners of a limited company, who in this case bear no risk, all risk is borne by your firm itself.

Deciding whether to start up as a limited company or not is a vital choice for all business owners. When converting your business status from a sole trader to a limited company, there are several significant distinctions, including tax liability and tax advantages.

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When deciding whether or not to become a lone trader, it’s crucial to consider the financial repercussions. You may also need to become VAT-registered depending on your yearly revenue and accounts.

As with any firm, when you work as a sole trader, you should maintain accurate records of all your revenue and spending.

Basic bookkeeping and accounting software may make it easy to track invoices, receipts and costs. You can save time when it’s time to file your annual self-assessment tax return with HM Revenue and Customs (HMRC).

We can help you complete a comprehensive business plan if you are still researching how to become a single proprietor while also taking the time to outline your company proposal.

What Taxes Do Sole Traders Pay?

Independent contractors have the same tax liability as regular workers. You’ll have to do the maths using the HMRC’s self-assessment tax return and fork over the cash before the deadline of January 31.

The following are examples of taxes that single proprietors must pay:

  • Taxes owed on any money earned over and beyond expenses
  • Payments for National Insurance (Class 2/Class 4) (These are scheduled for reform to eliminate Class 2s)
  • VAT (if your turnover is more than the threshold for the tax year)
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Why You Need a Dedicated Accountant

If you aren’t good with numbers or have a hectic schedule, it’s probably a good idea to hire an experienced accountant to handle your tax return.

Sole trader accountancy is no joke, but with a sole trader accountant, you can just give over your receipts and payments, and they’ll handle your management accounts and tax return.

If you hire a tax expert, you may be assured that you won’t go afoul of the tax man.

Keep all of your bills and receipts in a secure place so that you may provide them as evidence if necessary. An experienced accountant will ensure that your business expenses are deducted from your taxable income as legitimate business expenses.

Our Sole Trader Accounting Services

We understand that if you’re outsourcing, you will need a lot of help as a business owner. Here are some of the many services that our expert sole trader accountants can do for you:

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Tax Planning

We make sure you get the most out of any tax credits, deductions, business expenses, and exemptions you qualify for. Our experienced tax specialists will ensure that your company’s tax returns are filed promptly and following HMRC requirements.

International Tax Planning

We can help you minimise your UK and foreign tax obligations regardless of your international tax situation. How you structure your personal and commercial affairs in a foreign nation will determine how much tax you will have to pay there. We will create a unique plan to reduce your global tax burden.

Our chartered accountants and tax professionals can assist you or your company avoid overpaying taxes in the United Kingdom or elsewhere.

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Payroll Services

Pearl Lemon Accountants payroll services let you use your staff on more profitable tasks and remove the stress of management accounts, payroll, pensions, and compliance.

It’s nice to know that your company’s payroll follows the laws and rules, which are constantly changing.

We know a lot about different areas of payroll outsourcing. We’re not a computerised solution or computer-generated accounting software, so your paycheck gets the care tailored to you.

Personal Tax Services

Our experts will advise you about your tax situation to ensure you follow the law. We can help you with your personal tax return and inheritance tax (if any).

We offer a customised way to file taxes in the UK. These tax services try to bring in more money and lower tax costs.

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HRMC Tax Investigation

You should seek expert help as soon as possible if you are unsure about your ability to independently handle a tax investigation or audit.

We can assist you if you’re having trouble with VAT, PAYE, self-assessment tax returns, income tax, corporation tax payments, or other HM Revenue & Customs concerns.

Know that we will take the necessary precautions so that you never have to deal with the HMRC tax inquiry in the first place.

These are some examples of the breadth of our service offerings.

Want to inquire about something that isn’t here? Contact us by phone if you need help.

FAQs

You and your business are treated as though they are the same thing when you are a single proprietor. A separate business checking account is not mandated by law but is highly recommended when operating as a sole proprietorship.

Keeping track of everything can become a nightmare if you pay for your personal and professional expenses out of the same account. In addition, you could feel uneasy about letting your customers access your private account information.

Even while you may have to pay for the privilege, business checking accounts at certain banks come with services that make it easier to send invoices, file taxes, and handle payroll (if you employ staff).

If you already have a full-time or part-time job and want to start your own business on the side, you need to make sure that your employer is okay with this. 

Remember that if you are self-employed, you are responsible for reporting and paying tax and National Insurance on that income through self-assessment tax returns.

Your yearly self-assessment must include income from employment (reported on a P60 or P11d) and other sources.

At Pearl Lemon Accountants, we understand that a company should be able to choose which specific services they’d avail to enjoy an accounting service.

This is why the services you’ll avail of us will be tailor-made for you. Our rates will depend on this tailor-made service plan for you. As a first step, we recommend contacting us.

Here at Pearl Lemon Accountants, we offer the services that best suit gamblers such as yourself.

So what are you waiting for? Book a call now.