Sole Trader
There’s never been a better time to be a sole trader. Technology has pushed back boundaries and created new opportunities.
Depending on the type of work you do, you can be based almost anywhere. For example, some sole traders may need little more than a laptop and an internet connection. Others may need tools, supplies or a vehicle, but they’ll still be agile – ready to move wherever their work takes them.
With all this freedom, you’ll need accounting software that works the way you do. Sole trader accounting software has to fit in with your flexible way of working. This guide will help you find the right package for your one-person business
Depending on the type of work you do, you can be based almost anywhere. For example, some sole traders may need little more than a laptop and an internet connection. Others may need tools, supplies or a vehicle, but they’ll still be agile – ready to move wherever their work takes them.
With all this freedom, you’ll need accounting software that works the way you do. Sole trader accounting software has to fit in with your flexible way of working. This guide will help you find the right package for your one-person business
Total Control
As a sole trader you are your business, and you are in full control. You are responsible for all decisions without having to consult other directors or shareholders, so you can develop the business exactly how you choose.
Flexibility
You make the decisions. So it is simpler to adapt your business to changing demands within the market you serve. You can change prices and services, making decisions quickly and acting on them swiftly, keeping you competitive.
Privacy
Unlike a limited company, where all information concerning the business, including directors details, shareholder deatils and annual accounts are made public, information about sole traders is kept totally private.
Accounts
Although you must maintain detailed records including invoices, expenses, receipts, and file self assessment tax returns, the actual accounting process is much simpler for a sole trader than that for a limited company.
No set up costs
There is no need to register your business at Companies House, so the paperwork is very simple, you do not require the services of a solicitor or a formation agent thus no fees to pay. Simply inform HMRC that you are self-employed.
Cap Allowances
If you need to purchase equipment for your business, for example vehicles, tools, IT equipment or business furniture, you may be able to claim tax relief on these purchases in the form of capital allowances.
Profits are yours
As a sole trader the profits of the business are all yours. There are opportunities to offset many elements of expense and to take asvantage of many allowances before calculating tax due on net income.
How we can help
Countess & Co understand Sole Traders and we will help you get set up quickly and easily. We will create and manage your accounting system online, enter your historical records and then show you how to get the most out of it.