Accounting for Sole Traders
Operating as a sole trader means you are your business. You’ll be able to work as your own boss, and be able to determine how you work for yourself.
Being self-employed in this way can be a viable, and hugely successful option for many people, particularly given the freedom and flexibility working in this way can offer.
If you are considering a self-employed career, then operating as a sole trader is one means of structuring your business. Whilst a sole trader can enjoy being solely in charge of their business decisions, it also means they are solely responsible for the business.
This includes ensuring your accounts are in order. It’s important to weigh-up your options before going self-employed.
An accountant will be able to offer expert advice with setting-up and operating as a sole-trader, including the day-to-day running of your business.
Cutts & Co have years of experience helping self-employed workers and sole traders, and know exactly how to help fulfil the potential of your business.
We can manage all aspects of your accounting, and our modern, adaptable approach combines the power of online accounting with a dedicated team of experts to keep up with the pace and demands of self-employed work.
It’s important to choose the best business structure for the type of work you complete. Cutts & Co can help you determine whether a sole trader or Limited Company set-up is the correct choice, and help register either option with HMRC and companies house.
Not only will we take on the workload associated with maintaining records accurately and promptly, but our innovative online accounting approach will ensure you have fast access to records and reports, giving you the information you need when you need it.
Partnering with Cutts & Co will not only hand you back your free time, but we can advise and help you save on costs. We can complete your yearly self-assessment, process VAT returns if they are needed and help identify where you could be saving on your tax.
With us, you can be working smarter by taking your accounting online. Our team know-all-things cloud, and with our Xero Gold Accreditation you can expect a fast, flexible accounting service that will keep pace with your business.
Our team is ready to help you, and can offer any sole trader the following services.
A sole trader is a business structure for self-employed workers. As a sole trader, there is no legal distinction between you and your business. This means that you are personally liable for any costs your business incurs, and are solely responsible for both the costs, management and profits for your business.
You’ll need to register with HMRC to indicate your sole trader status, and this is something Cutts & Co can help with. Operating as a sole trader will offer you freedom to run your business how you see fit, even if you have additional employees, but you may find work harder to come by and investment options may be limited.
Sole trader status is an attractive option largely to the freedom and autonomy it grants. You’ll be your own boss and free to make business decisions that suit you. For those looking to choose a self-employed option, this can be the easiest and quickest option to get set-up with.
The costs and administrative workload are less than forming a limited company or partnership and so this is a good option if you are considering self-employment for the first time. Not only that, but as you own the business, you’ll also see any profits from your business in full after any necessary tax.
Where a sole trader differs from other business structures is that you are liable for the costs of your company, including if any litigation is taking against your business. Your personal assets and capital will be at risk if things do take a turn for the worse.
All administrative efforts will also be down to you. This not only includes keeping a comprehensive set of records, but you’ll have to make sure a self-assessment is completed yearly to HMRC and pay tax on your income. If your business earns enough, you will also need to register for VAT.