This service assists sole traders in fulfilling their personal tax obligations through the completion and submission of a self-assessment tax return.
Our service includes:
- As a sole trader, you are self-employed and operate your business as an individual. You are responsible for reporting your business income and expenses on your Self-Assessment tax return.
- If you start working as a sole trader, you need to register with HM Revenue and Customs (HMRC) as self-employed. You should register as soon as possible, but no later than 5th October in the second tax year of trading. Failure to register on time may result in penalties.
- As a sole trader, you need to report your business income and expenses on your tax return. This includes sales or turnover, as well as allowable expenses related to your business activities. You should keep records and receipts to support the figures reported.
- As a sole trader, you are liable for paying Class 2 and Class 4 National Insurance contributions (NICs) on your self-employed profits if your income exceeds the thresholds set by HMRC. These contributions help to qualify you for certain benefits and entitlements.
- Familiarize yourself with allowable business expenses that can be deducted from your income to reduce your overall tax liability. These can include costs such as office rent, equipment, travel expenses, and professional fees. Keep accurate records and ensure the expenses claimed are legitimate and directly related to your business.
With our Sole Trader Self-Assessment service, you can ensure compliance with your personal tax requirements as a sole trader. We provide expert guidance, helping you accurately report your business income and claim applicable tax reliefs to optimize your tax position.