VW Taxation Ltd
Accountants for Sole Traders
VW Taxation is here to provide helpful accounting support to your sole trader business. From bookkeeping to tax returns, we can keep you compliant, give you back valuable time and ease the burden of being your own boss.
As a sole trader, you are at the helm of your business, and life can get hectic. Managing your accounts can be one job too many and may even seem a little daunting at first. The team at VW Taxation is here to help relieve the pressure with a range of sole trader accounting services and expert tax advice.
To arrange a meeting, please drop us a line, and we’ll be in touch.
What is a sole trader?
‘Sole trader’ is a simple type of business structure adopted by small business owners. Sole traders are their own bosses and have complete control and responsibility for their business affairs. Unlike a limited company, sole traders are not required to register with Companies House and can begin trading as soon as they notify HMRC.
Sole traders pay Income Tax on their profits and are responsible for calculating what they owe. They must submit self-assessments to HM Revenue and Customs each tax year. They can retain the rest of their profits for themselves, although many sole traders choose to reinvest some of their money back into the business.
The simplicity of set up, full control and sole access to the profits are definite advantages, but they come with a bit of a price. Sole traders have unlimited liability, meaning they are personally liable for their business finances and must pay back any debts incurred from their own pocket.
Why does a sole trader business need an accountant?
A sole trader business isn’t legally required to have an accountant. But, given the complexity of tax for self-employment and the demands of running your own company, it can sure help.
Sole traders must register for Income Tax and submit a self-assessment tax return each year. This is fairly straightforward if you have accurate records of your income and outgoings. But if you’re tied up with running your business, bookkeeping can fall by the wayside, and mistakes can be made. Professional sole trader accountants can make sure your records are kept meticulously and submitted in a timely manner to avoid any last minute panic.
Producing spotless accounts is not just for the benefit of HMRC, however. Keeping on top of things helps you to track income, expenses, and profits, which is crucial for maintaining your cash flow and making everyday business decisions. It can also help to identify any future financial blips so that you can head them off or deal with them in advance.
Sole traders accountants can also provide expert tax planning services to keep you compliant and tax efficient. They can also provide assistance with budgeting and forecasting to make sure your company is on track and in good shape for expansion when the time comes.
Our accountancy services for sole traders
As your personal accountant, we can offer a range of services to keep your sole trader accounts in order and help your business grow.
Self-assessment tax returns
Contact VW Taxation, accountants for sole traders
VW Taxation is a small, friendly team of accountants for sole traders with many years of experience. We specialise in helping the self-employed to manage their business accounts and meet their tax obligations with ease.
We will assign you your own dedicated accountant to help make your life easier and improve the overall financial health of your business.
To find out more and get a quote on a sole trader accounting package, please get in touch today.
How do you find the right sole trader accountant?
The right limited company accountant for you may not be the same as the business next door, which is why it's important to do your research. Your budget is obviously a major factor, but be sure to look at reviews to gauge experience and a good quality of customer service.
At the end of the day, you're going to spend a lot of time talking to your accountant and will be sharing the most confidential information about your company with them. So it's important that you get on with them as well as have trust in their abilities!
At VW Taxation, we offer a friendly, personal service that our self-employed clients really value. We welcome drop-ins at our Portsmouth office, so feel free to pop in and introduce yourself for a chat.
How do I tell HMRC I am a sole trader?
Registering as a sole trader is simple, which is why it's an attractive option for many business owners. First, you need to create a Government Gateway account and fill in the necessary forms at www.gov.uk/log-in-register-hmrc. You can then begin trading straight away.
When should a sole trader become a limited company?
Many sole traders choose to register their business as a limited company once it is well established and their income has grown. It often makes sense from a tax efficiency point of view, as Corporation Tax can offer a significant saving over Income Tax if your earnings fall into the higher-rate band.
The other main benefit of limited companies is that company directors gain limited liability status, meaning that their personal assets are protected if the business runs into financial difficulties.
For advice on whether to register as a limited company, please speak to VW Taxation.