Keep your self-employed business compliant. We manage your bookkeeping review, claim all allowable expenses, and file your Self Assessment tax returns online.
Operating as a sole trader offers simplicity, but keeping track of tax codes, National Insurance bands, and what you can legally deduct can be stressful. We consolidate your bank transactions, review your business structure, and file your annual returns so you can focus on your craft.
As your business grows, remaining a sole trader may result in paying excess tax compared to incorporating a Limited Company. We perform regular incorporation reviews, showing you side-by-side tax calculations of your earnings to determine exactly when transitioning will save you money and protect your personal liability.
Registering your new business with HMRC for self-employment and obtaining your UTR (Unique Taxpayer Reference).
Preparing, reviewing, and filing your annual tax return online before the January 31st deadline.
Calculating your Class 2 and Class 4 National Insurance contributions alongside your tax bill.
Providing easy-to-use digital templates or review of your accounting apps to maintain compliant record keeping.
Your journey begins by registering for Self Assessment with HMRC. You must do this by 5th October in your business's second tax year. HMRC will issue you a 10-digit Unique Taxpayer Reference (UTR), which you will use to file your annual tax returns.
Sole traders only submit a single annual return:
• Self Assessment Tax Return: Submitted online by 31st January following the end of the tax year (which runs 6th April to 5th April).
• Payment Deadline: You must also pay your tax bill and Class 4 National Insurance by 31st January. If your tax bill exceeds £1,000, you may also have to pay "Payments on Account" (advance payments toward next year's bill) on 31st January and 31st July.
Yes, if your self-employed sales turnover exceeds the UK VAT registration threshold (£90,000 in a rolling 12-month period), you must register for VAT and submit quarterly VAT returns to HMRC using Making Tax Digital (MTD) software. You can also register voluntarily if your business sells to other VAT-registered entities.
There is no legal mandate to switch, but as your net profits grow (typically exceeding £30,000 to £40,000 per year), incorporating a Limited Company can become significantly more tax-efficient. This is because companies pay Corporation Tax on profits (19% to 25%) rather than personal income tax (20% to 45%), allowing you to draw profits via low-tax dividends.