As chartered certified accountants, our experience and knowledge helps us understand our clients’ businesses, allows us to work closely with them and complete accounting assignments to agreed timescales and with an agreed fee structure.

We by providing bespoke tax planning solutions to suit your personal and business needs. We also advise on tax deadlines and how to pay taxes owed. Our expertise will help you be as tax efficient as possible and get the most out of your business.

Many landlords are moving their properties into a company and purchasing any additions to their portfolio through the company. This may be the best course of action for some, however, the options need to be evaluated on an individual basis.

VAT is an increasingly complex part of running a business. We provide specialist VAT services and consultancy on a range of areas, identifying opportunities to improve cash flow, saving time and in many cases reclaiming VAT back.

The financial aspects of running a new company, and such matters can often appear daunting. The support of a firm of experienced accountants who specialise in helping startups find their financial feet, can be priceless.

With our bookkeeping service you can go about your business safe in the knowledge that you will receive accurate and professional reporting of your business affairs using the cloud based accounting software KashFlow. 

Liability

As a sole trader you are personally liable for any debt of the business.

Tax

Sole traders pay tax on their business profits via a self-assessment tax return;

The deadline for filing online self-assessment returns to HMRC is 31 January after the end of the tax year. The personal allowance for the tax year 2020/21 is £12,500;

The Basic rate of 20% tax is paid on income from £12,501 up to £37,500, the Higher rate of 40% is paid on income between £37,501 and £150,000 and the Additional rate of 45% is paid on income over £150,000;

Losses can be offset against other income in the same year, carried back and offset against previous year’s profits or carried forward and offset against future profits.

National Insurance (NI)

A sole trader pays Class 2 NI contributions of £3.05 per week and Class 4 NI contributions of 9% on profits between £9,501 and £50,000. Above £50,000 there are contributions of 2% of profit due.

Accounts and Tax Returns

Sole Traders and Partners are not legally required to file annual accounts;

They must, however, keep records of income and expenses for the purpose of completing their tax returns.

22 October 2020  Self-employed workers affected by coronavirus could receive up to £3,750 in the next tranche of grants, double the amount previously announced by the government. As part of the government’s ‘Plan for Jobs’, the chancellor announced an “increase in the generosity and reach of its winter support scheme” to support livelihoods in the “difficult months to come”. For the self-employed, eligible applicants will receive a maximum of £3,750 in the next round of support offered by the government. The amount of profits which will be covered under the scheme, from 20% to 40%.

13 October 2020  HMRC has received over 54,800 claims from customers using a new online portal that allows employees to claim tax relief for working at home. The portal (launched on 1 October), has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer during the coronavirus (COVID-19) pandemic. From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home. Workers will get tax relief based on the rate at which you pay tax.