Accountants for sole traders

If you are a small business owner struggling to find time to stay on top of your sole trader accounts, then help is at hand from JMC Accountancy

We have great respect for those that choose to go it alone as a sole trader business. It’s a fulfilling but demanding path, and you often have to assume the roles of director of operations, administration, customer relations, and marketing…but accountancy needn’t be one of them.

If bookkeeping and tax matters are getting in the way of your day-to-day work, then consider outsourcing some or all of your accounting tasks to a dedicated accountant. The team at JMC Accountancy are highly experienced in small business accounting and will relieve the burden.

We live and breathe accounts and love what we do, so you don’t have to! As certified accountants, your accounts couldn’t be in better hands. We will keep your books in meticulous shape, help you plan for your tax bill and ensure that you never miss a deadline. If that sounds good, then please don’t hesitate to get in touch.

What is a sole trader?

A sole trader is a self-employed individual who owns and runs their own business. As a sole trader, the owner is not a distinct legal entity from the business. That essentially means that they are the business and, therefore, personally liable for any debts or legal action incurred.

The benefit of being a sole trader is that it’s very easy to set up, requires little paperwork and gives the owner total control of the business. They also get to keep all of their profits, of course.

The risks of being a sole trader are that you have unlimited liability, and your personal assets could be used to offset any debts incurred by the business. Also, you are solely responsible for running the business and making decisions, which can be a huge undertaking.

Fortunately, support is available from dedicated accountants, like JMC Accountancy. We are experts in the accounting and tax responsibilities of sole traders. This is of great reassurance to our sole trader clients as they know they are compliant, fully tax efficient and have the breathing space to work on their business.

Do I need an accountant as a sole trader?

As a sole trader, there is no legal requirement for you to have an accountant or use accountancy services; you can undertake the accounts side yourself.

You are legally required to keep a track of your business finances and inform HMRC of your annual income in order to calculate your tax bill. This means staying on top of all income and expenses and keeping records of every transaction. This can be very time consuming and daunting if you’ve no prior experience with accounts. But there’s no need to struggle alone. Investing in accounting services could be the wisest business decision you will ever make.

JMC accountancy sole trader accounting services Cambridgeshire

We offer a full range of accountancy services to sole traders in Cambridgeshire and beyond. We can offer a simple tax return service from £295 + VAT, or put together a more comprehensive package to look after all of your accounting needs.

Bookkeeping

Bookkeeping is fundamental to good financial management and should be a daily task. But what busy sole trader has the time? An accountancy firm can take on your books, so all of your transactions and business activity are logged regularly and accurately.

Business expenses

Sole traders are entitled to claim tax relief on allowable business expenses, such as travel, accommodation, overheads and consumables. What is and is not allowable can sometimes be a grey area, which is why the help of a dedicated accountant can be valuable.

Xero cloud accounting software

If you are using simple bookkeeping software and haven’t moved to the cloud, then we highly recommend you take the plunge! Xero is easy to use and available on any device, anywhere you are. It’s totally live, so you will always have an accurate view of your finances.

Income tax returns

The self-assessment tax return process can be baffling at first and can be a real chore. As your dedicated accountant, we can help you plan for your annual tax returns and do all the necessary paperwork. We can also offer regular tax efficiency reviews to keep you as profitable.

Limited company formation

There may come a time when your business has grown, and it makes more sense to form a limited company. This comes with the benefits of limited liability and greater tax efficiency. We can help you weigh up the pros and cons and register your business with Companies House. We can also take care of VAT registration if necessary.

Sole traders are required to submit a self-assessment tax return to HMRC each January. Tax is due on all profits above the personal allowance, which is currently £12,570. The amount of tax you pay is dictated by your earnings. From April 2023, the basic rate of income tax is 20%.

As of January 2023, the government have announced that Making Tax Digital for income tax is to be delayed until 2026. However, it's worth getting ahead of the game and using compatible accounting software like Xero.

One of the perks of being a sole trader is that you can keep 100% of your profits after tax and pay yourself as you wish. It is wise to set up a separate bank account for your business affairs to keep things simple.

The terms 'self-employed' and 'sole trader' tend to be used interchangeably, but they are different. Self-employed refers to the fact that you are not in the employment of a company and do not pay tax via PAYE. A sole trader refers to your trading style and means that you have sole liability for your business and must pay income tax using the self-assessment process.

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Why choose JMC Accountancy?

JMC Accountancy has a great deal of experience in working with landlords and second homeowners. Our team is extremely knowledgeable when it comes to property tax and can help you to manage your properties while making you more tax efficient.

We are a friendly, approachable team, and we steer clear of confusing accountancy jargon. As small business owners ourselves, we know what you’re up against and will do everything we can to make your life easier and your buy-to-let business more profitable.

Contact us today for a free, no-obligation accounting consultation.

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Contact us today for a discovery call and see how we can help you run and grow your business.
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