Self Employed

What is a sole trader/self employed person

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You’re self-employed if you run your own business, hire people, provide the equipment you need to work, charge for your services and sell goods or services for profit. A sole trader or self-employed person is not a limited company.


When you are self-employed, you are responsible for notifying HMRC of your earnings and paying all appropriate taxes. In order to do this correctly, you must keep records of:


  • Your invoices.
  • Your expenses.
  • Your profit.

You must fill out regular tax returns – or have your accountant file it for you.

Why expenses are important

There are many costs associated with running your own business. If you have purchased certain items or services in conjunction with the day to day running of your business, you will be able to offset these against your turnover – meaning you do not have to pay tax on that amount. 


Expenses include:

  • Travel costs such as parking, public transport fares and fuel.
  • Accountancy fees.
  • Office equipment such as stationary and business phone costs.
  • Protective or branded clothing.
  • Staff and financial costs.
  • Advertising costs.
  • Business rates and utilities.

Plus other specific expenditures.

How cloud accounting tools can help you

Did you know you could have Xero accounting software from as little as £6 per month? Accessible through a Xero partner such as Let's Balance.


Here's why you want to take a look at this:

  • link your bank accounts so you can build your books as you go in real-time and manage your cash flow.
  • Categorise income and expenses, know your profit in real-time
  • upload receipts using your camera phone.
  • create and send quotes and invoices in an instant 
  • the ability to do it all via the mobile app
  • a library of ready to run financial reports
  • tax returns made easy and the ability to estimate your tax bill


You can manage all of this yourself or we can help you out with the books as much or as little as you like. Every relationship is tailored to each individual client.



Find out more

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Send us a message or give us a call for an informal chat about your needs.

Online Accounting Software

Xero
Quickbooks
Cloud Accounting
Accounting Software
Accounting Systems

Beautiful online business accounting for your PC, laptop, tablet or phone. Login anywhere, anytime, send invoices, log receipts, see up-to-date financials on the go.

Bookkeeping Services

Bookkeeping Services
Bookkeeper
Accountant
Tax returns

By outsourcing your bookkeeping to an accountant, you can free up your time and rest assured that your financials are all in order.