Introduction

You are considered self-employed when you operate your own business, employ individuals, supply your own work tools, bill for your services, and engage in the sale of goods or services to generate income. Being a sole trader or self-employed individual excludes you from being classified as a limited company. If you have any uncertainties or require additional details, please refer to the HMRC website for guidance.

What records do you need to keep?

When you are self-employed, you are responsible for notifying HMRC of your earnings and paying all appropriate taxes. In order to do this correctly, you must keep records of:
  • Your invoices.
  • Your expenses.
  • Your profit.
You must fill out regular tax returns – or have your accountant file it for you.

What can you claim as expenses?

Running your own business involves various expenses that can be offset against your turnover, reducing the taxable amount. For instance, if you’ve incurred £10,000 in expenses and your turnover is £50,000, you will only be taxed on £40,000. These expenses encompass:

  1. Travel costs, including parking, public transport fares, and fuel.
  2. Accountancy fees.
  3. Office supplies like stationary and business phone expenses.
  4. Protective or branded clothing.
  5. Staff and financial expenditures.
  6. Advertising costs.
  7. Business rates and utilities.

In addition to these, there may be other specific expenditures eligible for offsetting.

Why choose Arthur Hamilton Accounting for your sole trader or self employed accounting?

Arthur Hamilton Accounting offers a hassle-free solution for self-employed individuals. We streamline your tax returns, making the process simple and efficient. With our meticulous account management, you can enjoy complete peace of mind.

Forget the stress of managing expenses, dealing with tax returns, and keeping track of receipts. For a starting cost of £500 + VAT per year, we handle all aspects of your tax return, ensuring a worry-free experience for you.