Sole Trader Accountant in Lancashire
Looking for local accountants in Bolton, Lancashire? Level Accounting provides specialist accounting services to sole traders in the construction, trades, hospitality and beauty industries.
Welcome to Level Accounting
Our team of professional accountants in Bolton provide accounting and tax services to sole traders. We offer a full range of expert accountancy services along with straight talking advice, so that you can focus on your business without worrying about the numbers.
Paying your taxes is one of the most daunting parts of being a self employed. But for the self-employed, accountancy goes far beyond simply filling out self-assessment tax returns.
Along with tax planning, we can help you with bookkeeping, accounting software, expenses, VAT returns, accounts preparation and business planning.
So save yourself the hassle of everyday accounting and allow us to manage your finances on your behalf. Contact us by phone or email for a FREE initial consultation.
Do I need to do a tax return?
As a sole trader, you should register your business for tax if you are earning more than £1,000 per year. Once registered, you are required to send a self assessment tax return to HMRC each year.
This involves filling out a form online, in which you detail all of your income and expenditure for the year, along with any business expenses.
If your annual profit is below £12,750, then you do not owe any income tax. This is known as your personal allowance. Once your profits go above that figure, you are required to pay tax at 20% on profits up to £50,270 and 40% on profits up to £150,000.
What records does a sole trader need to keep?
It’s wise to establish good bookkeeping practices to ensure you stay on top of your tax affairs and fulfil your obligations to HMRC. You should keep a monthly record of all transactions by logging receipts, expenses, invoices, and any grants, VAT and PAYE records if applicable to you.
While you are not required to submit these with your annual return, you should keep them to work out your taxable income or if HMRC request them. You are required to keep records of your accounts and taxes for five years.
What expenses can a sole trader claim?
It’s essential for small businesses to keep track of expenses, as many of them can be claimed back from your profits before tax. Knowing exactly what you can claim can save you valuable cash, to keep either as profit or to invest in your business growth.
Allowable expenses include:
- Travel expenses and mileage
- Tools and equipment
- If you work from home, certain household expenses such as electricity
- Training courses and professional subscriptions
There are many more eligible expenses which is why it pays to invest in the expertise of a professional accountant. Level Accounting will ensure you receive every penny you’re entitled to, without you having to spend hours working out what expenses are and aren’t allowed.
Our sole trader accountancy services
Still wondering if you need an accountant as a sole trader? Then consider the amount of time you spend working on your books, record keeping and filling out your tax return. What’s the value of your time in hours? Chances are our accountancy services would be far more cost effective, with the added benefit that your numbers are being looked after by a professional.
Level Accounting can provide you with a range of services tailored to your needs, including:
- Taxation services - we can provide tax advice to keep you compliant with HMRC, as well as tax planning services to ensure that the self-assessment process goes without a hitch.
- Cloud accounting software - we can help you to master the latest software, such as Xero, so that you can access your accounts on the go, on any device, no matter where you are. Once you start using it, you'll wonder how you ever managed without it!
- Self-assessment tax returns - annual returns can be a nightmare, especially when running your business is taking up most of your time. We can take the weight off and make sure your tax return is done accurately and on time, to avoid penalties.
- Bookkeeping services - we can take control of the daily number crunching and record keeping to give you back precious hours.
- VAT returns - VAT is a handful, especially as a sole trader. Allow us to take the pain out of VAT returns by managing them on your behalf.
Contact Level Accounting for accountancy services in the North West
If you are a sole trader looking for accountancy services in or around the Bolton area, then we are the accountants for you. We have extensive experience of accounting for small businesses such as construction companies, plumbers, electricians, hotels, B&Bs and beauty professionals.
We can provide valuable accountancy services and business advice, not just to keep you compliant, but to actively save you money, help you achieve your business goals and make plans for the future. Plus, if you are considering the benefits of becoming a limited company, then we can advise you and help you with the transition.
We offer competitive rates on tailored accountancy packages, which may not be as much as you think.
If you want to chat to us about our services, contact Level Accounting for a FREE accounting consultation.
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FAQs
If you are a sole trader earning over £85,000 per year, it is now mandatory to keep your books in government approved accounts software, as part of the Making Tax Digital initiative.
If you make below £85,000 per year, then you can choose to do your bookkeeping on a spreadsheet, if you prefer.
As a sole trader, you are required to keep your accounts and tax records for at least five years.
As a sole trader, you owe tax on your profit in the year its is earned. You will be required to calculate your income tax bill via the annual self-assessment process, on any profit above the personal tax allowance of £12,570.
The rate of income tax is 20% on earnings up to £50,270 and 40% on earnings up to £150,000. You will also need to pay National Insurance on profits above £6,725.
If you one day decide to become a limited company, then you will have to pay corporation tax.
