If you are a sole trader / self-employed, the records you must keep, and the legal returns that you must make are usually straightforward. But sometimes it can feel like you are lost in a maze!
At Clear Cut Accounts we realise that you should be spending your time running your business and making money. By showing you the best way to attack your accounts and finances, we can greatly reduce the time you take on paperwork - freeing you up to spend more time focusing on your business, or even taking time off!
From day one - we will listen to you and set up the kind of system you are comfortable with - either computer or paper based.
The HMRC have complex rules and regulations, but there are many allowable items that small businesses can claim on their return to reduce the tax they pay. There are also lots of items that are not allowed. We know the rules, and we can ensure that you claim for all your allowable expenses, to minimise the tax you pay. We can also offer last minute Self Assessment Return Help.
Whichever option you choose, we will explain what your figures mean, what you can do to improve profit and minimise the tax you pay, and even offer advice on how to grow and develop the company in the future. We'll even talk to the HMRC on your behalf!
Our rates are shown on the What We Charge page.
Set up / submission of returns for VAT; Set up / submission of returns for CIS; Help with Employing People / Payroll, Providing regular Business Information - P&L, Balance Sheet, Customer Information, Supplier Information, Profitability.
A Sole Trader owns and runs a business on their own. They can employ people and still be a Sole Trader, but they have to make all of the decisions by themselves, and they remain personally responsible for all debts the company runs up. All Sole Traders are Self Employed. For Self Employed Partnerships see the Partnerships section.
You will be sent a Self Assessment Tax return by the HMRC in May / June (unless you have a different year end to the tax year).
You have until 30th Sept to file it by post or 31st January the following year to file it online.
Late returns are charged a penalty of £100. Late payment of tax will be charged interest.
You do not have to complete formal yearly accounts, but it is recommended that you prepare regular reports to monitor your business's performance.
A record of all sales and takings, including cash receipts – e.g. till rolls, sales invoices.
A record of all purchases and expenses, including cash purchases, e.g. receipts, purchase invoices.
A record of all of these transactions in your bank account, e.g. bank and credit card statements, cheque book stubs, paying-in slips.
An annual stock check is also recommended.
We recommend these records are kept for 6 years.
The HMRC can ask to see your records up to 6 years after they are filed.
If they find any missing documents or mistakes they can demand the underpaid tax, and can also charge you heavy penalties.
Further penalties are payable for VAT registered companies.