Running your business as a sole trader is the easiest and most cost effective way to get started.
When you are running a business as a sole trader, you are self-employed for tax purposes. It is important that you register as self-employed with the HMRC so that you can pay any taxes and national insurance due. You will also be able to register a trading name.
Our online accounting software makes it easy for you to raise invoices, as well as record your expenses – you can even attach a photo of any receipts to minimize your paperwork. The system will estimate your tax bill, and has a live profit and loss running, so that you know exactly how your business is doing.
As your business grows, you may also be interested in registering for VAT, or possibly hiring an employee. We can assist with this too.
Once the tax year closes on 5-Apr we will prepare your self-assessment tax return and send a draft to you for your approval. This is how you pay your taxes and NI – payment is due to the HMRC by 31 January the following year. As you pay your taxes through the self-assessment system if the taxes you owe are more than £1,000 you will be required to make payments on account for the following year. The HMRC assumes that your taxes for the following tax year, will be at least the same, and require you to pay this in advance in 2 equal instalments (due 31 January and 31 July).
All this for the low monthly fee starting from £25 (+VAT) per month.