Sole Trader Accounts & Taxation

As a self-employed person you need to complete a self-assessment tax return. You will automatically be sent the form from HM Revenue & Customs at the beginning of the next tax year, providing you have informed them by completing form CWF1. The deadline for filing is 31st January following the end of the tax year from when you started in business. However, you should not leave this task until 31st January as you will also need to pay tax by 31st January and therefore advance notice of the actual liability would be helpful for planning your cash-flow.

Your business accounts need to be prepared to a year end of your choice. It is usual to have a 31st March year end so it coincides with the end of the tax year. We can advise you of your best options when deciding on the business year end date.

Sole traders pay income tax and class 4 national insurance on the 'taxable profits'. In order to arrive at the 'taxable profits' figure, we give technical advice on which business expenses can be claimed against your income and those which are not allowed. Overall, we advise our clients on how to reduce their tax bill by claiming all the expenses they are entitled to claim.

For information and assistance on our self-assessment services, please call 01923 224411 or email Priya Raja-Motala.