Sole trader

What Is a Sole Trader/Self-Employed?

As a sole trader or self-employed individual, you run your own business without being a limited company. This means you manage your own operations, hire staff, provide your own equipment, and are responsible for charging for your services or selling goods for profit. If you need further clarification, check the HMRC website.

What Records Do You Need to Keep?

When self-employed, it’s crucial to keep accurate records to report your earnings and pay taxes correctly. You should maintain:

• Invoices: Track all sales and services provided.
• Expenses: Record all costs related to running your business.
• Profit: Monitor the difference between your income and expenses.

Regular tax returns must be filed, either by you or through your accountant.

What Can You Claim as Expenses?

Running a business involves various costs that can be claimed as expenses to reduce your taxable income. Common expenses include:

• Travel Costs: Parking, public transport fares, and fuel.
• Accountancy Fees: Costs associated with professional financial services.
• Office Equipment: Stationery and business phone expenses.
• Protective or Branded Clothing: Necessary attire for your business.
• Staff and Financial Costs: Salaries and related expenses.
• Advertising Costs: Marketing and promotional expenses.
• Business Rates and Utilities: Rent, electricity, and other essential services.
• Other Specific Expenditures: Costs directly related to your business operations.

Why Choose Alyf for Your Sole Trader or Self-Employed Accounting?

At Alyf, we simplify the process of managing your self-employed finances. We handle your tax returns, keep your accounts in order, and offer you peace of mind.

Forget about the stress of managing expenses, tax returns, and receipts. For just £600 per year, we’ll take care of your tax returns and ensure everything is handled efficiently. Reach out to us today to make your accounting hassle-free.