Sole trader
Simple to start and run.
What's included
- Profits taxed as your own income through Self Assessment
- One tax return a year, prepared and filed by us
- Fewer filings and lower running costs
Plain-English bookkeeping for small UK businesses
HomeFreelancers
Accounting for freelancers and contractors, from designers and developers to writers and consultants: we prepare and file your tax returns, keep your records straight and help you choose how to set yourself up.
Freelancing means you are responsible for your own tax. For a sole trader that is a Self Assessment return each year. For a limited company it is annual accounts, a Corporation Tax return and usually a personal return for you as well. We prepare and file all of these for you, from records we keep or check, so you can get on with the work you are paid for.
Who it's forFreelancers and contractors in creative, tech and professional work: designers, developers, photographers, writers, consultants and anyone else selling their own time and skills. It suits people in their first year of freelancing as much as those who have been self-employed for a while.
One of the first decisions is how to trade. There is no single right answer. It depends on your profits, how you want to pay yourself and what your customers expect.
Simple to start and run.
What's included
A separate business with its own obligations.
What's included
Some larger customers prefer to contract with a limited company, while some freelancers prefer the simplicity of being a sole trader. We can set out the figures for your situation on the free call. If you go down the company route, our page on year-end accounts and Corporation Tax explains what the company has to file.
You pay tax on profit, so claiming the right costs makes a real difference. In general, a cost can be deducted if it is incurred wholly and exclusively for the business. For freelancers that often includes:
We work through your costs with you and explain anything that cannot be claimed, so there are no surprises when the return is filed.
If your self-employed income for the tax year is £1,000 or less, the trading allowance may mean you do not need to register. Above that, you need to register for Self Assessment by 5 October after the end of the tax year, and the online return and tax are due by 31 January.
You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12 months. Check at the end of each month, and if you have gone over, tell HMRC within 30 days of the end of that month. Some freelancers register earlier by choice, and whether that helps depends on who your customers are. When you are registered, we prepare and file your VAT returns from the books we keep through our bookkeeping service.
We are based in Camden, close to the studios and shared workspaces around King's Cross and Camden, and can work with freelancers anywhere in London and UK-wide. The first conversation is a free 20-minute call by phone or video.
Keep a record of everything you earn and spend from day one, and register for Self Assessment by 5 October after the end of your first tax year. Opening a separate bank account for the business makes everything easier.
A sole trader does not have to have one, but it keeps your records far cleaner. A limited company should have its own account, because the money belongs to the company, not to you.
Yes, at any point in the year. Our guide to switching accountants explains how it works.
Yes. Our guide on a missed Self Assessment deadline explains the penalties and the next steps, and we can help you get it filed.
Keep reading
Book a free 20-minute call and we will look at how you work and what you need to file.