What is a sole trader/self-employed?

If you are someone who owns a business, hires employees, provides the necessary tools and equipment, charges for services rendered, and sells goods or services for profit, then you are considered self-employed. It’s important to note that a sole trader or self-employed individual is not the same as a limited company. If you have any doubts or require more details, it’s recommended to refer to the HMRC website for guidance.

What records do you need to keep?

As a self-employed individual, it is your responsibility to inform HMRC of your earnings and ensure that all relevant taxes are paid on time. To achieve this, you will need to maintain accurate records of your

✓ Invoices,

✓  Expenses,

✓  Profits.

Additionally, you are required to submit regular tax returns, which can be done by yourself or through the assistance of an accountant.

What can you claim as expenses?

Operating a business involves various expenses. However, you can reduce your taxable income by offsetting certain purchases or services that are necessary for the day-to-day operations of your business against your turnover. For example, if you have a turnover of £50,000 and have spent £10,000 on expenses, you will only be required to pay tax on £40,000.

Eligible expenses may include

✓Your travel costs.
✓ Your accountancy fees.
✓ Your office equipment.
✓ Your branded clothing.
✓ Your staff and financial costs.
✓ Your advertising expenses.
✓ Your business rates.
✓ Your utilities.

Plus, other specific expenditures.

Why choose MyTaxDoc for your sole trader or self-employed accounting?

My Tax Doc offers services that alleviate the burdens of being self-employed. We simplify
the tax return process, ensuring that you don’t have to worry about the associated
headaches. With our support, you can relax knowing that your accounts are being
managed efficiently. You don’t need to be anxious about expenses, keeping receipts, or
filing tax returns as we can handle everything for you starting at £400 per year.