My Personal Accountant - Certified Public Accountants

Sole traders

Self employment (sole trader) is a way of conducting the business “in your own name” rather than seperate legal entity. It means that despite being able to trade under different trading name, we, as an individuals, are responsible for all financial affairs of the business.

HMRC requires a registration within three months from the date we started the trade, otherwise, they may impose a penalty. In order to successfully apply for registration we need Nationl Insurance Number (NIN). A self-employed person is responsible for the debts of their business with their private assets.

There is a legal requirement that a self employed person submits their tax return to HMRC once a year. The tax year finishes on 5th of April each year and the deadline to submit and pay tax is 31st January the following year.

From April 2024 HMRC is roling out a new system called ITSA – Income Tax for Self Assessment, which will require monthly declarations followed by one final return at the end of the year. This will affect all sole traders with income over £10,000 a year, including landlords.

Our firm is fully prepared for the upcoming changes and we can offer fully compatible solutions well ahead of the requirements becoming mandatory in 2024. Just get in touch with us to discuss it further.