As a self-employed trader, you’ll need to prepare and file a self-assessment return containing sole trader business accounts. Your profits are taxed as income and you’ll need to pay fixed-rate Class 2 National Insurance contributions (NICs) regardless of any profits you make. You must also account for and pay Class 4 NICs on your profits.
We can help advise on strategies to minimise your tax liability by ensuring you claim all available allowances and reliefs.
As a sole trader, it is worth remembering you are personally responsible for any debts run up by your business. This means your home or other assets may be at risk if your business runs into trouble.
With Making Tax Digital for Income Tax creeping ever closer it would be prudent to review your current methods, we have a fully MTD compliant service available where both Business Banking and Software is currently free.
Are you interested in our sole trader tax accounts service, starting from just £35 per month?