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Sole trader accounts – how to make the most of your finances

Sole trader accounts – how to make the most of your finances

Sole traders are actually the most common type of business in the UK, so it’s surprising this area of self-employment doesn’t get more attention. Here are some of the key things to bear in mind when planning your sole trading business financials:

Ensure you pay taxes on time

Of course, this should be a given. But that doesn’t stop hundreds of sole traders each year from being late in filing their yearly tax returns.

It’s far easier to keep and update your records through the year, rather than waiting until the last minute to have to put your return together. (And, of course, if you find out your tax owed before the deadline, you have time to put the extra money aside.)

Invoice straight away

Make sure you invoice as soon as you’ve completed the work you were hired to do. Your detailed invoice should contain everything the company needs to pay you including the total charge, payment terms and your bank account details.

Unfortunately, payments can take some time to come through, so be sure to add a clear payment deadline to your invoice. Chase it up if it’s not met!

It’s often sensible to set up a business bank account

Sole traders can use their personal bank account for work, but it’s not necessarily a good idea. If you make a lot of smaller transactions in your business, it can get confusing keeping track of which payments (and costs) are personal and which are related to work.

The other bonus is that it can help you manage money better. By keeping your work deposits in a separate account, you’ll give yourself a better chance of not overspending the money that you need for paying taxes and expenses.

Make sure you save more than you need to

The other benefit of having a separate business account is that you can have a clear picture of how much money your business makes, giving you the chance to save a set portion of your income.

This isn’t just a matter of keeping money back for tax, you may have lean periods or come across investments that could help you grow that require capital. It’s much less stressful to know that you have money there if you need it.

Get in touch with our team today for more information on sole trader accounts and personal tax returns.

Affordable Pay-monthly Packages

We offer a full range of services to limited companies, solo trader, partnership, charity, LLP, CIC as well as individuals. We have arranged our services into easy to choose packages that suit your needs.

Start-up
£ 60  / Month (+VAT)

This price plan is suitable for the start-up companies who are not VAT registered.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Payroll & RTI submission for 1 employee
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Assisting with correspondence from HMRC and Companies House
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 80K
Limited Company
£ 100  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered and turnover is less than 100K with a couple of employees.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 2 employees
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • MTD VAT returns submissions – quarterly
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 100K
Company Pro
£ 150  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered; turnovers are more than 100K and have 2 directors and shareholders.

  • Company formation (if required)
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 5 employees (Free)
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Unlimited face to face advice and email support
  • 2 Directors
  • 2 Shareholders
  • Annual turnover should be less than 200K
Company Premium
Let's talk.  / 

This bespoke price plan is suitable for the companies who are VAT registered, with more directors, shareholders and employees. Also, annual turnover is more than 200k and requires further bespoke services.

  • Company formation
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission all employees
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for the all Directors (Free)*
  • Unlimited face to face advice and email support
  • Flexible and can be discussed
  • Annual turnover should be more than 200K

Add on Services

  1. Personal Tax Returns

    This price plan is suitable for self-employed individuals, landlords and those who need to submit Self-Assessment Tax Returns.

    If you need to submit the Self-Assessment Tax Return, we can offer you competitive prices starting from £150 + VAT. Price can vary according to your nature of income. Please contact us for more details.

  2. Tax Investigation
  3. Business Legal Support
  4. Company Formation
  5. Business Mentoring
  6. ARA accounting services for ATOL & ABTA travel companies

    Our commitment to you is that we’ll ensure all the information we’ve submitted to the Civil Aviation Authority is up-to-date and accurate. 

Taxcare Accountancy was formed to provide Small & Medium Businesses with an affordable, proactive and professional accountancy services…