Sole Trader Accounts

By law, you must keep a record of your income and expenditure, which must be retained for a minimum of five years after the tax submission date of 31^st January. The records you should keep include:

• All income you receive through your business.
• All income you receive from non-business sources, such as investments or property.
• All your business expenses.
• If your business is VAT registered, you must keep your VAT records for a minimum of six years.
• If you have any employees you must keep a record of wages paid through HMRC's PAYE system.
• The details of any grants you receive.

Contact us on 01666 829 013 for a free consultation to find out more about the accounting requirements for sole traders and partnerships.

Sole traders pay tax through HMRC's Self-Assessment system. Your  Self-Assessment tax return needs to be submitted by 31^st January to avoid being fined by HMRC.

Sole traders pay income tax on their net profits, Class 2 and Class 4 National insurance contributions and if you are VAT registered, VAT is also payable.

Contact us on 01666 829 013 for a free consultation to find out more about the accounting requirements for sole traders and partnerships.

Sole traders do not have to have a separate business bank account, as they are seen as a single entity for legal and tax reasons. However, unless your transactions are very simple, it is a good idea to have a separate business bank account, as it can soon become messy and confusing to work out which are personal and which are business income or expenditure.

Contact us on 01666 829 013 for a free consultation to find out more about whether you should have a sole trader business bank account.

First and foremost, it is a legal requirement for sole traders to keep accounts. Keeping good sole trader accounts will also help you keep track of your income and expenditure, so that you keep enough of your income aside to pay the tax which is due on 31^st January each year. Not all sole traders are good at keeping tidy accounts and this is where the expertise of a good accountant can help you.

Contact us on 01666 829 013 for a free consultation to find out more about the accounting requirements for sole traders and partnerships.

An accountant can help sole traders deal with their tax returns and make sure they are accurately prepared and submitted on time. Sole traders are often extremely busy, or are not good with book-keeping tasks. Getting an accountant to look after your sole trader accounts can save you a lot of time, worry and hassle.

Contact us on 01666 829 013 for a free consultation to find out more about the accounting requirements for sole traders and partnerships.