Many sole traders, especially the inexperienced, don’t know they’re able to claim these expenses and miss out on the tax breaks as a result. Even if you’re good with numbers, it’s so easy to make mistakes on tax returns. And if you’re one of the millions of people who aren’t mathematically minded, the risk is even greater. Innocent tax return mistakes can mean you face penalties and even an investigation by HMRC. If you want to learn more about our petty cash accounting services, contact our friendly team today. Click the button below to get a quick and easy quote and see how QAccounting can assist your sole trader business.
Sort your taxes
Remember to keep receipts of your business expenses because you will likely need proof for HMRC. The UK government has set out the expenses it will allow to prevent people from claiming money back for things that aren’t used for business purposes. Some sole traders may employ dozens of staff and superficially resemble companies. From April 2026, the government will introduce Making Tax Digital for Income Tax Self Assessment, where accounting must be done using cloud-based software.
- That’s right, you will always be charged the price that you sign up at.
- Sole traders intermingle personal and business transactions more frequently.
- They’ll also share the load in terms of strategic planning and monitor all upcoming deadlines.
- We generally recommend that active traders conduct their active trading business in a legal entity (usually an LLC).
Why is it important to track expenses and how does Sole help?
I love that’s I get to support an Aussie team and product, which is easy to use and doesn’t break the bank. But apart from this, it’s Sole’s support team that truly stands out for me, with their hands-on approach, timely responses, and proactive attitude. I came across an issue, they did not waste time to response and work with me to resolve it. Then, when I suggested a new feature, they not only listened but also swiftly implemented the change and followed up to ensure everything worked. It’s refreshing to see a company that aspires to grow and improve alongside its customers. From tips on taxes to Self Assessments and expenses, we have advice for sole traders and landlords in all stages of their journey.
Better chance of getting paid on time
Well, bookkeeping software for sole traders is essentially a tool that helps you efficiently and accurately handle and streamline your finances. Whether you want to know more about setting up as a sole trader, your tax obligations or the accounting software that’s right for you—you’ll find answers here. Let our AI sort business and personal real estate cash flow expenses.4 Snap pics of receipts, track your mileage, accept payments, and send out professional, customisable invoices—all while you’re on the move. Keep track of your income and expenses effortlessly with FreshBooks.
The totals page of the template shows all the figures for April and the end bank balance. You should always ensure that the bank balance equals the bank figure. However, if you are confident, you can complete accounting for sole traders your return yourself. This blog post will discuss the basics of self-employed bookkeeping and how to do it yourself.