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sole traders taxation advice

Sole Traders – do you need an Accountant? 

Being self-employed can bring a level of work satisfaction you never thought possible. Many people thrive with their newfound independence and are very successful in their chosen field.  However, along with the advantages of being your own boss there are a number of draw backs.  There is no guaranteed income, no paid sick days and you become entirely responsible for handling all your financial matters including budgeting, bookkeeping and dealing with HMRC.

Accountants assist by supporting your goals, providing financial advice and ensuring your records and accounts are compliant with current regulations.  Instructing an accountant can save you time and money, relieve some of the stress and assist with forward planning allowing you to concentrate on growing the business and striking on that work/life balance.

How and when we can help as your accountant?

If you are just starting out as a business

  • We can assist with creating a business plan. This can be especially useful if you are looking for funding.
  • We can provide expertise and advice on choosing the right legal structure.
  • We can assist in choosing financial software or advise on the right bookkeeping method for your needs.
  • We can ensure that you have everything in place from the start.

When you need to deal with HMRC

  • We can complete the paperwork to ensure that you are registered as self employed in a timely manner.
  • We can prepare your annual accounts and submit your tax returns advising how much tax and you need to pay and when it is due.
  • It can be very stressful and potentially time consuming if HMRC raise an enquiry into your tax return. We can deal with HMRC for you, and we offer tax investigation insurance so you don’t pay fees for any work carried out during an official enquiry, review or investigation.

If you are applying for a mortgage

  • Banks and finance companies require an accountant certificate to certify business and personal income if you apply for a mortgage when self-employed – we are qualified to sign these off.

As your business and income grows

  • We will let you know when you need to register for VAT and complete the registration for you. We can prepare and submit your VAT returns ensuring that you meet Making Tax Digital regulations.
  • You may reach a point where you need to take on employees or contractors. We can help with real time submissions for PAYE, prepare payslips and deal with auto enrolment for you.  We can assist with the preparation of employment contracts and calculate holiday entitlement.
  • Once you have become established and earning profits we will monitor your business growth and advise when it is most tax efficient to become incorporated (that is trade as a limited company).

When should you trade as a limited company?

  • If you want to protect your personal assets (house, car etc) from having to be sold to cover business debts.
  • If your profit share(s) is/are being partially taxed at 40%.
  • If you wish to maintain control of your business but enable others to share in profits by receiving dividends.
  • We can advise on when to make the transition, complete formal registrations and produce your annual financial statements including all necessary regulatory filing submissions.

At Spriggs and Co Chartered Certified Accountants, we are highly experienced in delivering professional advice tailored to your needs, from Business Advice, to general financial advice. We can ensure you remain fully compliant with all obligations allowing you to focus on growing your business.

Contact us for more information and a no-obligation quote.

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