What is a Sole Trader?
A sole trader, also known as a sole proprietor, is a business structure where one individual owns and operates a business as a self-employed entity. They are the sole owner, meaning they control all business decisions and keep the profits (after taxes), but they are also personally liable for all business debts and liabilities
This is a business that is owned and run by one person, but may still employ staff, and be liable for VAT.
This individual is personally responsible for all business debts and obligations.
GMS Accountants can support sole traders in Cambridge and Nottingham with Year End Tax Returns, VAT returns, Payroll and Self-Assessments. Please see below for more detail, or get in touch.
" I have used GMS Accountants for the last three years for my sole trader self-assessment tax return and their service has been efficient, friendly, and price competitive with attention to detail when giving business tax advice. Highly recommended service. "
Howard Trendell - HowTo Training
Tax Return
All Sole Traders will need to file annual tax returns with HRMC. The financial year begins on the 6th April, and finishes the following year on the 5th April. The deadline for filing and paying your tax return is the 31st January, for all online submissions.
Part of the tax return process will be looking at the performance of the business by creating a profit and loss report, this profit and loss report will then be used to create your tax return.
The tax return will tell you how much profit is liable for tax, and how much tax you need to pay to HMRC. There are a number of factors which can influence this such as capital allowances.
GMS Accountants can produce and file your tax return on your behalf, please get in touch to see how we can support you.
VAT Returns
Sole Traders with a VAT taxable turnover in excess of £90,000 need to register for VAT with HMRC. A Sole Trader can also voluntarily register for VAT if it is beneficial to the business.
GMS Accountants can prepare and file VAT returns on your behalf, register your company for VAT, and deal with any complications.
Please get in touch to find out more. Or before contacting me, you could read more about VAT in this blog.
Payroll
You may be the only employee or have a number of staff, and find payroll stressful, GMS Accountants can process payroll on your behalf.
Please get in touch to find out more.
