Self employed, or sole traders, are required to submit a tax return to HMRC every year. The tax return consists of their trading information showing the sales and expenses during the year. Digital Tax provide sole traders an annual tax return but also offer a Profit and Loss account to clearly show how the business is trading and any potential areas for growth or restructure.
Self Employed vs Limited Company
Sometimes trading as a sole trader may not be the most tax efficient for your situation. We offer support and guidance on whats most tax efficient for you and help you decide on how to move forward. We can calculate an estimated tax liability and help you understand the advantages of possibly changing.
We provide you with the latest accounting software to manage your sole trader bookkeeping. This gives you real insight into tracking cashflow and getting paid faster. We offer FreeAgent as a standard but you can upgrade to Xero if you prefer.
How Much Does it Cost
Our ‘One’ package starts at £49.00 a month which includes the software to manage your finances.
Our Sole Trader Services
For Sole Traders we recommend FreeAgent software to manage your finances. This gives you an excellent overview of your business and helps you manage invoices. You can read more on FreeAgent here
Sole Trader Accounts
We compile sole trader accounts based upon your accounting data showing you the profit and loss of the business throughout the accounting year.
Self Assessment Tax return
From your accounting reports, we then enter this information onto your self assessment tax return. We then generate the tax return plus any other income sources for your review.
With the use of accounting systems, easily manage your VAT returns with clear updates showing how much VAT is upcoming and when it will be due to be filed and paid to HMRC.
Our sole trader packages offer excellent support all year round so that we can help you with queries on your business.
Advice On Going Limited
You may reach a stage where it may be more tax efficient to trade as a Limited Company so we can help guide you on this to see what options would be best financially for you and your business.