Accountants for Sole Traders

Smooth Accounting – proud to support sole traders

Running a sole trader business is rewarding and liberating, but let’s face it, keeping track of your business finances can be a drag. Whether you’re just starting out or you’ve been self-employed for a while, managing income tax, expenses, payroll, and bookkeeping can feel overwhelming.

At Smooth Accounting, we believe that every sole trader deserves an accountant who understands their needs, saves them money, and keeps things simple. We can take on all or part of your accounts so you can fully devote yourself to your business.

Contact us today to chat about your business and how we can support you.

What is a self-employed sole trader?

A sole trader is anyone who runs their own business, hires their own people, provides their own equipment, and sells goods or services for a profit. If that sounds like you, congrats – you’re officially part of the self-employed club.

Unlike a limited company, a sole trader business is considered the same entity as you, the business owner. This means you’re personally responsible for your business finances, including any debts or liabilities. On the plus side, all the profits are yours – minus the income tax and National Insurance, of course.

For full details of what being a sole trader entails, visit the government’s website.

What records do you need to keep?

Admin isn’t most people’s idea of fun. However, as a sole trader, keeping accurate records is essential. HMRC needs to know exactly how much you’ve earned and spent, and it’s up to you to provide the proof.

So, what exactly should you be keeping tabs on?

• Invoices for services or products you’ve provided.
• Business expenses, including travel, office supplies, and advertising costs.
• A record of your profits.

You’ll need to file a self-assessment tax return every year to report these figures to HMRC and pay income tax. As your dedicated accountants, we can handle all or some of this for you, making sure you’re on the right track and fully compliant.

What business expenses can sole traders claim?

Now for the good news: running a sole trader business means you can claim certain expenses against your income, lowering the amount of tax you pay.

But what exactly counts as a business expense? Here are a few examples:

• Travel costs (like fuel, parking, or public transport).
• Office supplies (stationery, computer equipment, and phone bills).
• Advertising (website costs, brochures, social media management, etc.)
• Professional fees (such as accountancy services)

The rule of thumb is simple: if it’s directly related to running your business, it’s probably tax deductible. If you’re unsure, we can help you identify every last allowable business expense to maximise your tax savings.

Is it worth having an accountant as a sole trader?

Sole traders are true go-getters. They’re independent, driven, and hands-on in every aspect of their business. Whether it’s chasing clients, managing finances, or keeping the day-to-day running smoothly, they wear all the hats. They’re totally in control, from the profits they earn to the decisions they make.

But while it’s rewarding, the responsibility of running your own business can be a lot. If you are a sole trader with the weight of the world on your shoulders, know that you don’t need to go it alone. Whether you’re just getting started or you’ve been your own boss for a while, having an accountant can save you time, money, and a whole lot of stress.

Tax rules change all the time, and missing a deadline or forgetting to claim an allowable expense can be costly. When you work with us, we ensure that your self-assessment tax returns, expenses, and income tax obligations are all taken care of.

Our accountants for sole traders do more than just crunch the numbers. We offer tax planning advice that helps you make the most of your income and ensure you’re as tax-efficient as possible. If you think about it in terms of what we can save you, it’s an investment rather than a cost.

Our sole trader accounting services

At Smooth Accounting, we can put together a comprehensive sole trader accounting package starting at £400+VAT per month. One fee, no hidden costs or surprise bills. Just a simple monthly cost that won’t break the bank.

Here’s a taster of the small business accountancy services we can provide:

Tax Returns
We can prepare and file your self-assessment tax return, making sure you meet HMRC’s deadlines without breaking a sweat.

Bookkeeping Services
Our team can effortlessly keep your books accurate and up-to-date. Our preferred platform is Xero, a cloud-based, powerful, but easy-to-use bookkeeping software.

VAT
If you’re eligible or required to register for VAT, we’ll handle the paperwork and ensure your returns are submitted accurately.

Business expenses
We’ll help you track and claim every allowable expense, ensuring you never pay more tax than necessary.

Tax Planning
Planning ahead and making smart decisions can save your company money. We will help you identify expenses and tax reliefs to help you keep more of your profit.

Frequently asked questions about sole trader accounting