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Sole Trader Accountants

Sole Trader Accountants

Starting alone in small business, is a very popular choice nowadays. The Department for Business Innovation and Skills reports that 75% of all UK businesses have no employees: a huge impact on the economy. Sole trading has many advantages and Target Accounting helps many solopreneurs taking care of all the accounting tasks. Thank you for considering Target Accounting for your accountants for sole traders. We understand that starting a business can be a challenging endeavor, but rest assured, we are here to support you every step of the way. With our comprehensive range of services, we can provide you with the guidance you need to navigate through the complexities of tax regulations and financial management. Our team of experienced professionals is dedicated to helping you achieve your goals and ensuring compliance with the ever-changing tax laws. Please don't hesitate to reach out to us for a one-stop-shop experience tailored to your specific business and accounting needs.

Sole Traders Accountants

Accounting Services for Sole Traders

Our accountants can help you start as a sole trader and evaluate other company formation options. Thanks to an end-to-end service you will get a clear financial picture of your business and expert advice on how to optimise tax planning and deal with HMRC correspondence.

Advantages of Sole Trading in the UK:

  • Ease of set up
  • Less administration
  • Fewer costs
  • More privacy
  • Complete control
Accounting

Sole Trader Accounting

Target Accounting assists sole traders with several crucial tasks, such as preparation of annual accounts, calculation of tax liability and tax returns filing with HMRC. Our London business accountants will help you make sure your business complies with legal requirements and avoids penalties.

Why choose our sole trader accounting services:

Accounting

Sole trader or Limited Company?

Choosing between starting a limited company or setting up as a sole trader can be difficult, and one should simply evaluate carefully his own situation to make a good choice. There are many factors involved, such as the type of business, its turnover, your future plans business finances, commercial risk level etc.

Setting up as a limited company offers several tax advantages compared to being a sole trader. As a limited company, you can benefit from lower tax rates, income tax, planning opportunities, and the ability to take advantage of dividends. For more detailed information on limited companies, you can find helpful guidance available here.

Sole Trader advantages
  • No Ltd. company formation fees
  • Tax return filing only once a year
  • Less administrative work
Limited Company advantages
  • You are separate from the company, so no personal possessions at risk
  • Better tax planning opportunities
  • Easier to grow

Accountants For Sole Traders | Accounting Packages For Sole Traders

Setting up as a sole trader is a popular choice for individuals who are self-employed or aspiring to be. According to the UK Government, a significant majority, 76%, of small businesses in Britain operate as sole traders. Being a sole trader means working for oneself, without the need for partners or shareholders.

This legal form offers simplicity and flexibility, as it requires minimal formalities and allows specialist sole trader accountants full control over decision-making. Sole traders are personally liable for their business’s debts and obligations, but also enjoy the benefits of keeping all the profits. It is essential to consider the financial and legal aspects before embarking on this entrepreneurial path.

When registering as a sole trader, individuals accept the personal financial risk associated with their business. Since the sole trader business is not considered a separate legal entity, the sole trader is personally liable for any debts or legal actions against their work. In contrast, owners of limited companies enjoy limited liability, which means their personal assets are generally protected.

Keeping detailed records of income and expenses is crucial for sole traders. Utilizing basic bookkeeping software can simplify the process of logging invoices, receipts, and expenses. This will streamline the submission of self-assessment tax returns to HMRC, as it is mandatory for all sole traders.

Starting as a sole trader can be overwhelming, especially when it comes to setting up and defining your business proposition. At Target Accounting, we understand the challenges and can assist you in finalizing a detailed business plan. This plan serves as a roadmap for your start-up, providing clarity and certainty. Additionally, it can be particularly useful for sole traders seeking business finance, whether from traditional banks or alternative finance lenders.

How do I register as a sole trader?

To register for Self-Assessment, you must inform HMRC that you will be submitting a tax return annual self assessment amount. This can be done online or by printing and mailing the required form from HMRC’s website. This registration process is essential to ensure accurate tax reporting and compliance with HMRC regulations.

When informing HMRC about your intention to work as a a sole trader accountant, they will provide you with a Unique Taxpayer Reference (UTR). Additionally, they will create an online account specifically for your Self-Assessment obligations. This online account serves as a platform for managing and fulfilling your tax-related responsibilities efficiently.

Once you have registered for an online account with HMRC, you will receive a letter containing an activation code. This code is necessary to access your online account. With your online account, you can obtain details about your tax status, such as the amount of tax you have to pay income tax you paid in past years, your tax code, and the deadline for filing your taxes.

Frequently Asked Questions

Target Accounting’s sole trader accountants are specialized in meeting the unique needs of UK entrepreneurs. Their expertise in the nuances of sole trading in the UK ensures tailored, effective financial strategies for each client.

These accountants streamline the business setup process for sole traders by offering guidance on financial matters, handling paperwork, and ensuring compliance, making the setup process more manageable and less time-consuming.

They provide comprehensive tax services including preparation of annual accounts, calculation of tax liabilities, and filing tax returns, ensuring accuracy and compliance with HMRC regulations.

Yes, they offer financial planning services, giving you a clear picture of your financial standing and advising on tax planning and business growth strategies.

They handle all aspects of HMRC compliance and correspondence, from ensuring accurate tax filings to responding to inquiries, thus relieving clients of this complex responsibility.

Their accountants are adept in preparing precise and comprehensive annual accounts, ensuring that your financial records accurately reflect your business’s performance.

They possess deep expertise in UK tax laws, enabling them to accurately calculate tax liabilities while optimizing tax benefits.

By utilizing their extensive knowledge of tax regulations and deductions, they ensure that your tax returns are optimized for maximum financial benefit.

Their personalized approach and comprehensive service range make them an ideal choice for solopreneurs who require dedicated financial management.

By managing financial and tax-related tasks, they significantly reduce the administrative load on sole traders, allowing them to focus on core business activities.

Absolutely, they offer bespoke financial advice tailored to the specific needs and goals of each sole trader.

They stay abreast of the latest legal requirements and ensure that all financial practices of the sole trader adhere to these regulations.

By providing expert financial management and tax planning, they help sole traders minimize expenses and maximize profitability.

They ensure that financial data is kept confidential and provide sole traders with full control over their financial decisions.

Their reputation for reliability, expertise in UK business accounting, and personalized service make them a top choice for UK business owners.

Sole Trader Accounts

Contact us to learn more about our Sole Trader services

Achievements

We're multi-award winning accounting firm

British Accountancy 2019

British Accountancy 2019

British Accountancy 2018

British Accountancy 2018

British Indian Awards 2017

British Indian Awards 2017

British Accountancy 2015

British Accountancy 2015

British Accountancy 2014

British Accountancy 2014

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