Keeping on top of the accounts for Sole Traders and especially for new businesses without any experience of business tax can be daunting.
At Parfitt Taylor we take away the stress of submitting your tax return to HMRC. We complete a set of accounts and add the information to your tax return.
Unlike a Limited Company, all income is, in effect your income (after ongoing expenses). This is why it's so important to keep on top of the number on an ongoing basis and not wait until year end.
Planning for Self-Employed Tax: Avoiding Year-End Scrambles
If you are new to being self employed you will be used to receiving a salary from your employer where income tax is deducted at source. With self employment it's easy to forget that part of your earnings need to be put aside for tax which is calculated from your trading profits. It's also easy that when you need to spend some of your tax pot during the year you worry about making up the difference at year end.
For any business, cash is king and even successful business can fall foul of not planning finances correctly.
VAT Registration, Business Bank Accounts, and Beyond for Sole Traders
As your business grows you may fall into the VAT payment bracket of over £85,000 PA or if you have a lot of costs that require paying out VAT there may be a benefit to registering for VAT on day one. We can also advise on when it's best to change your business status to Limited Company.
There's no legal requirement to run a separate bank account as a sole trader but we would recommend doing this and paying yourself from the business account to keep some clarity when it comes to knowing how the business is doing and what you are personally taking out of it.
If you are new to business, have been struggling to keep on top of your accounts or even had late payment fines then give Rebecca a call on 01604 330220 to hear how we can help you.