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Sole Trader Accounting Services

Your very own expert Sole Trader Accountant

Whether you are an electrician, gas engineer, plumber, builder, freelancer, contractor, beautician, hairdresser, taxi driver, catering company, Healthcare worker or a rocket scientist, we have the right sole trader accountant and sole trader accounting package for you from as little as from as little as £10 per month.

Although being a sole trader is one of the simplest ways to get started in business, there are many processes that need to be followed.

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Sole Trader Accountants

Dedicated Sole Trader Accountant
All returns and filing included
Unlimited help and advice
Leading cloud accounting software
Real-Time Bookkeeping
Reminders – never miss a deadline

Dedicated sole trader accountant
All returns and filing included

Unlimited help and advice
Leading cloud accounting software

Real-Time Bookkeeping
Reminders – never miss a deadline

We provide expert sole trader accountancy for businesses throughout the UK

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Why use Accounting Wise for your Sole Trader Accounting?

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Your Own Dedicated Sole Trader Accountant

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Build Your Own Package

When you join us, you will receive your very own dedicated sole trader accountants. Our fully qualified and friendly team will be on hand to help you throughout the year for all your financial queries.

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Leading Accounting Software

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You are provided with leading accounting software which will help reduce the time it takes to – provide quotes and invoices to customers, chase payments, and monitor outstanding balances.

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Tailored Sole Trader Accounting Services

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Tax & Accounting packages tailored to suit your sole trader business. We are always straightforward in our services & pricing. We take care of your accounting and let you get on with making your business a success.

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Unlimited
Expert Advice

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Your dedicated sole trader accountant will always be on hand to answer any questions about your limited company. You can contact them via email, phone, live chat, Microsoft Teams or meet them in person.

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Regular Deadline
Reminders

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We send regular automated reminders to inform you of when your accounts and returns are due to be submitted, helping to ensure you never miss a deadline for your small business again.

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We currently support over 2,000 individuals and businesses in the UK

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Get started with the right accounting solution for your Sole Trader business

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Included in our Sole Trader Accounting Packages

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  • Unlimited help and advice

  • Reminders for all of your important deadlines

  • Access to business guides and resources

Get started with the right accounting solution for your sole trader business

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Our Accredited Accountants

You can feel safe in the knowledge that we are experts in our field.

Our online accountants have a range of qualifications from the Association of Accounting Technicians (AAT), Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in England and Wales (ICAEW). We are also an Institute of Certified Practising Accountants (ICPA) accredited firm, and a HMRC registered Agent.

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What is a Sole Trader?

A Sole Trader is an individual that owns and runs a business. A Sole Trader is fully liable for any debts and contracts the business has and from a legal point of view there is no difference between the business and the individual.

Many people often start trading as a Sole Trader because it is the simplest way to begin and trade, then progress to operating through a limited company later on when the business starts to make reasonable profits.

Get in contact today if you are looking for a Sole Trader Accountant to help with your Sole Trader Accounting.

Sole Trader Accounting - What is a sole trader?

Pros and Cons of Sole Trader Accounting
Modern Sole Trader Accounting

Pro‘s and Con’s of being a Sole Trader

The main advantages of setting up as a sole trader are:

  • Total control – You have total control over the business. Decisions can be made quickly and easily, from accountancy and financial decisions to general business decisions.
  • Easy to change to another trading identity. It is relatively easy to change your trading identity from that of a sole trader to a limited company.
  • Keep the profit – As the owner of the business, all the profit belongs to you.
  • Business affairs are private – When you run an unincorporated business your accounts are not made available to the public therefore competitors cannot see what you are earning hence they will know less about how your business works and how it succeeds.

The reasons why sole traders are often successful are:

  • They can offer a more personal approach – A smaller business can have closer contact with their customers and develop a close rapport in order to give a high level of service and customer care.
  • They can be sensitive to the needs of their customers – Being closer to the customer allows you to react more quickly to their needs than a larger business.
  • Can cater for the needs of local people – Small local businesses will be closer to the community and can develop good business relationships with their understanding of the area and local knowledge.

The main disadvantages of being a sole trader are:

  • You are personally liable and accountable for all your businesses debts – Should your business fail you could end up losing your personal assets such as your home, car, etc.
  • Can be difficult to raise finance – When you run a small unincorporated business, banks will not lend you large sums and you may find raising finance for the business is very difficult.
  • Can be difficult to enjoy economies of scale – Smaller business often find that they cannot buy supplies in bulk and do not enjoy the same discounts as larger businesses.

Get started with the right accounting solution for your sole trader business

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Essential FAQs for Sole Trader Accounting Services

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A sole trader is a self-employed individual who owns and operates their business. They are personally responsible for all business debts and liabilities.

Yes, you must register as a sole trader with HMRC for Self Assessment to report your income and pay taxes on your business profits.

Sole traders pay income tax on their business profits and are also required to pay Class 2 and Class 4 National Insurance Contributions (NICs).

It’s not mandatory, but an accountant can help with bookkeeping, filing tax returns, and ensuring compliance with tax laws, saving you time and potentially reducing your tax bill.

You need to keep records of all sales, expenses, and receipts, as well as detailed records of your income for tax purposes. These records must be retained for at least five years after the Self Assessment deadline.

Sole traders must submit an annual Self Assessment tax return online to HMRC by 31 January each year, detailing their income, expenses, and profit.

Sole traders can earn up to the Personal Allowance (£12,570 for the 2023/24 tax year) before paying income tax, though National Insurance Contributions may still apply.

Yes, you can claim allowable business expenses, such as office supplies, travel, equipment, and utilities, as long as they are wholly and exclusively for business use. These can reduce your taxable profit.

You must register for VAT if your turnover exceeds the current VAT threshold. You can also register voluntarily if it suits your business.

A sole trader is personally liable for business debts, while a limited company separates personal and business liabilities. Sole traders have simpler tax affairs, but limited companies offer more protection for personal assets.

If your business makes a loss, you can carry it forward to offset against future profits or sometimes offset it against other income to reduce your tax liability.

Yes, you can employ staff as a sole trader. You’ll need to register as an employer with HMRC and operate PAYE to manage tax and National Insurance deductions for your employees.

It’s not legally required, but having a separate business bank account can help you manage your finances, keep records clear, and make it easier to track business income and expenses.

Yes, many sole traders run their businesses from home. You can claim a proportion of your home expenses, such as utilities and rent, as business expenses if used for business purposes.

Business rates are only applicable if you use commercial premises. If you work from home, you usually won’t pay business rates, but this depends on how much of your home is used for business purposes.

Yes, you can incorporate your business into a limited company. This process involves registering with Companies House and transferring assets. It’s advisable to seek advice from an accountant before making this transition.

Switching to us for Sole Trader Accounting is easy

1 Choose Your Package

Pick the sole trader accounting services that you would like from either our pre-built packages or build your own to find out exactly how much you will be paying each month.

2 Sign up with Us

Once you have picked your level of service you’ll simply need to send over a few extra details to register with us via our sign up form or over the phone

3 You’re ready to go

That is it, we will begin to set your limited company services up for you, contact your previous accountant if required, and begin the authorisation process with the HMRC

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Online Company Formation Services

Free company formation with our Pre-Built or Bespoke Accounting packages!

All official documents provided

Online Hub to manage your company

London Registered office Address

Your own incorporated limited company

Company Formation
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Accounting Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.