SOLE TRADERS 

Trusted, experienced, sole trader and small business accountants in Milton Keynes. 
 
Does it feel like you are always thinking about accounting, but it never gets done? 
 
It’s not easy running a small business. We realise that and it’s our role to put you in control of your accounts. Our promise to you is to keep the accounting jargon to an absolute minimum. You’ll have some easy to follow instructions and guidelines that will put you in control of your accounting affairs. Say ‘goodbye’ to accounting headaches with our unrivalled support – we’ve got your back! 

How Brilliant Accountants help Sole Traders 

Whether you’re a start-up, small business or growing company, we’ll provide all the support and advice you’ll need. Every year we help a lot of sole traders in Milton Keynes and further afield. We’ll complete your sole trader accounts and sole trader tax returns. 
 
Whatever business sector your work in you’ll receive high level of customer service with an unrivalled out-of-hours contact facility. Sole trader packages include a service to suit your requirements and budget. All services are delivered by experienced qualified bookkeepers and accountants. 
 
The average for self-employed/sole trader accounts is around £230 per year. 

Affordable accountants in Milton Keynes 

Although we never intend to market our sole trader accountancy services as ‘cheap’ our fees do appear to be amongst the lowest in the Milton Keynes area. Regardless of the fee we charge all services we perform for sole traders are undertaken by experienced and qualified personnel. 
Frequently Asked questions:  
I’m in a right mess with my accounts and taxes, can you help? 
Have things got to a point where, quite frankly, you don’t know where you are with your accounts? Well, don’t relax but don’t panic either. We have seen it all before. We are not here to judge what’s gone on or why. We are just here to help you sort the mess. It may be painful for everyone but we can help you get it sorted, just give us a call. 
What is a Sole Trader? 
You’re self-employed if you run your own business as an individual and work for yourself. This is also known as being a ‘sole trader’. As a sole trader, you and your business are considered to be the same. This means that, should your business incur any losses or debts, you are personally liable. 
 
You have complete responsibility for your business’s activities. You can keep all your business’s profits after you’ve paid tax on them. You must also follow certain rules on running and naming your business. Some people assume that registering as a sole trader means that you have to be a single-person business, but this isn’t true. You can hire staff as a sole trader. 
What are the potential disadvantages of operating as a Sole Trader? 
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You will have to do everything yourself within your business 
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Generally you will pay more taxes and National Insurance 
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You often have to pay taxes to HMRC in advance (Payments On Account) 
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It can be difficult to raise finance 
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It can be difficult to prove earnings for things like applying for a mortgage 
How do I set up as a sole trader? 
To set up as a sole trader, you need to tell HMRC that you pay tax through Self Assessment. You’ll need to file a tax return every year. The tax year runs from 6 April of one year to the following 5 April. 
 
Registering for Self Assessment – How to get a HMRC Unique Tax Reference (UTR). 
If it’s your first time registering you will need to create a Government Gateway log in. You’ll receive an ID and you will need to create a password. You can then continue to register for Self Assessment and receive a UTR from HMRC. 
 
Do I need Accounting Software? 
It’s advisable to invest in accountancy software such as Quickbooks, Xero or Sage. You can keep, maintain and manage bookkeeping and make sure general record keeping is accurate. 
Do I need to register for VAT? 
You must register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business. For example, you might so this if you sell to other VAT-registered businesses and want to reclaim the VAT. 
Do I need to register for CIS? 
If you’re working in the construction industry as a subcontractor or contractor you will need to register with HMRC for the Construction Industry Scheme (CIS)  
Can I claim a CIS refund? 
If you work as a subcontractor in the construction industry the organisation you work for might pay tax for you. You can probably claim a tax over-payment and, if successful, HMRC will pay some money back to you. 
 
We find that year after year many subcontractors haven’t claimed their full refund. In many cases they have missed out or underclaimed on relevant allowable business expenses. 
 
We can review your current year’s books and give you a free estimate of how much you could claim. We can also review previous tax years and make an amended claim if relevant. Talk to us today, just give us a call. 
What are the advantages of operating as a Sole Trader? 
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it's relatively easy to set up and start trading 
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there isn’t too much admin involved 
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you are your own boss and make all decisions 
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you keep 100% of the profits after tax 
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legal, admin and accountancy fees are lower 
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closing the business is relatively straightforward 
When should I set up as a sole trader? 
You need to set up as a sole trader if any of the following apply: 
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You earned more than £1,000 from self-employment between 6th April of one year to the following 5th April. 
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You need to prove you’re self-employed, for example to claim tax-free childcare 
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You want to make voluntary Class 2 National Insurance payments to help you qualify for benefits. 
As a sole trader you'll need to: 
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pay Income Tax on your profits and Class 2 and Class 4 National Insurance - use HMRC’s calculator to help you budget for this. You may also have to make Payments On Account
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apply for a National Insurance number if you’re moving to the UK to set up a business. 
How should I name my business? 
You can trade under your own name, or you can choose another name for your business. You do not need to register your business name. 
 
You must include your name and business name (if you have one) on official paperwork, for example invoices and letters. 
 
Sole traders must not include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’ in their business name as this is an offence. 
 
You’ll need permission to include a ‘sensitive’ word or expression or something that suggests connection with government or local authorities. For example, to use ‘Accredited’ in your business name, you need permission from the Department for Business and Trade (DBT). 
 
 
If you choose a name or logo that’s registered as a trademark or is already being used, the owner could take legal action against you. 
 
If you register a trademark, it’s easier to stop other businesses using your name or logo. 
Get things right and don’t lose out 
Invest in Brilliant Accountants for your sole trader accountancy affairs. You can make sure you claim relevant expenses and don’t end up overpaying tax. 
Free Consultation 
We are more than happy to answer any specific questions you might have. Please give us a call or complete the contact us form and we will get in touch. There’s no obligation on your part, this will just be an initial informal meeting or chat. We’ll see if we can help you with any accounting issues. We can check if there’s anything that may be looming that requires some tax advice and planning. 
Get in touch 
Rock solid accounting support for your business 
 
Contact us today for all things accountancy & tax in Milton Keynes.