Sole Trader Accounting
At Asmat Accountants, we offer transparent and reliable accountancy support for sole traders across the UK. Our services cover everything from tax returns, VAT returns, bookkeeping services, payroll services, and self-assessments to specialist areas such as CIS compliance, landlord accounts, and contractor support.
We know that spending hours tracking receipts and updating spreadsheets takes valuable time away from your business. That’s why, for a fixed annual fee, we provide a complete online accountancy package designed around your needs.
With us, you’ll benefit from:
- Self-assessment tax returns filed accurately and on time
- Simple bookkeeping and VAT submissions
- Payroll management for staff and subcontractors
- CIS refunds and compliance handled smoothly
- Unlimited advice and proactive guidance throughout the year
No hidden costs. No jargon. Just clear, professional accountancy that lets you focus on running and growing your business while we take care of the numbers.
From the simplest questions to the biggest concerns — we’re here to help.
A truly unlimited accounting package that meets all your needs with complete transparency — no hidden costs, and a guaranteed response to your enquiries within three hours.
Unlimited support via phone and email
Absolutely no hidden fees
Guaranteed response within 3 hours
Trust the professionals with your numbers
We’re here to support your growth and reduce your tax liabilities.
Our goal is to support your business growth while reducing your tax burden. With monthly or quarterly management reports generated through QuickBooks Accounting Software, you’ll gain clear insights to make smarter business decisions. Plus, your accountant will be equipped to provide you with ongoing tax guidance every step of the way.
Monthly or Quarterly Management Reports
QuickBooks Subscription Included
Ongoing Expert Tax Advice
Ready to join us? We’ll handle it all for you!
Once you give us the go-ahead, we seamlessly take over all your accounting needs. If required, we’ll liaise directly with your previous accountant on your behalf, ensuring your accounts and tax matters are brought fully up to date without delay.
We liaise with your existing accountant on your behalf.
We handle HMRC approval to become your appointed accountant.
You stay focused on what you do best — running your business.
Frequently asked questions
DO SOLE TRADERS NEED AN ACCOUNTANT?
Although hiring an accountant is not legally required when operating as a sole trader there are various benefits to doing so.
Do I legally need an accountant?
Despite common assumption, small businesses are not required by law to engage an accountant, and organisations that meet the following criteria are exempt from auditing:
1. The business must be “small,” as defined by two of the following criteria: turnover of less than £6.5 million, average employee count of less than 50, and balance sheet turnover of less than £3.26 million.
2. If a firm member seeks an audit (assuming they hold 10 percent of the share capital or 10 percent of all members for a company limited by guarantee).
The majority of businesses meet this criterion.
Why would you engage an accountant?
Despite the fact that hiring accountants is not needed, the vast majority of sole traders do so for a variety of reasons.
Simply put, an accountant does more than put your books together at the end of the year and file your VAT filings. They also do a range of other things, like:
- Getting the company registered with the necessary tax departments, such as VAT and PAYE.
- Establishing and maintaining the company payroll, as well as complying with the new RTI standards.
- Bookkeeping.
- Organising business correspondence (HMRC).
- Providing tax planning guidance.
- Professional references are available upon request.
- In addition, experienced accountants are more aware with the nuances of dealing with tax authorities, the right format for submitting information to HMRC, and are usually better prepared to deal with tax enquiries if they arise.
Additional Points to Consider
If you decide to go it alone, you must ensure that your accounts are kept in accordance with Generally Accepted Accounting Practices, that information is submitted on time and accurately (and in the correct format), and that the company’s statutory and financial obligations are met.
Compare the time you’ll spend preparing your accounts, bookkeeping, and dealing with HMRC to the expense of hiring an accountant for a small business or freelancer.
If saving money is your top priority, an accountant may be able to help you save both time and money by allowing you to focus on running your business rather than worrying about numbers.
WHY IS IT IMPORTANT TO KEEP ACCOUNTS AS A SOLE TRADER?
As a sole trader, you must calculate the amount of tax you owe each year. This will be considerably easier if you have a clear picture of your income and expenses. Because you won’t have your tax withdrawn on a regular basis through a PAYE system, maintaining track of your accounts prevents you from accidentally depleting the funds you’ll need to pay HMRC on January 31.
When you’re a sole trader, it’s often beneficial to keep track of how much you spend and generate. With everything laid out, you can spot possibilities to boost your profit margin, such as switching suppliers or raising the price of particular products or services.
WHAT ACCOUNTS DO I NEED TO KEEP AS A SOLE TRADER?
By law, you must keep track of your income and expenses and keep them for five years after the 31st of January tax filing deadline. If HMRC requests these, it’s critical that you have them ready. Here is a list of all the documents you should keep:
- As a sole trader, your business revenue includes all you earn from your services and sales.
- Personal income – Any income you receive from other sources, such as property and investments, that may have an impact on the amount of tax you owe.
- Expenditure – Payments for items required to run your firm efficiently.
- VAT records – If your annual turnover exceeds the VAT threshold, you must register for VAT and keep records for a minimum of six years.
- PAYE (Pay As You Earn) records – You can hire workers as a sole trader without creating a limited company, but you’ll need to keep track of your salaries via HMRC’s PAYE system.
- Grants – Any funds you receive as a result of a grant.
WHAT TAXES DO SOLE TRADERS PAY?
The following are the taxes that sole traders must pay:
- You pay income tax on your net earnings after making Class 2 and Class 4 NI contributions (these are set to be reformed to remove Class 2s)
- VAT (Value Added Tax) (if your turnover is more than the threshold for the tax year)
OTHER COMPANY TYPES WE HELP
- Small limited company accountants
- Sole trader online accountants
- Online partnership accountants
- Limited liability partnerships accountants
- Contractor accountants.
