Setting up as a sole trader is the quickest and easiest way to start your own business. Registration is straightforward and record keeping is simple. You are the sole owner of the business and have complete control over all decisions.
Being your own boss gives you full control on; when, how and where you work.
Registering as a sole trader carries several advantages and disadvantages:
Profit retention; as the sole owner of the business you keep all of the profit of the business.
Privacy; when you run an unincorporated business your accounts are not made public, competitors are therefore unable to see what you are earning hence will know less about how your business works to succeed.
It is easy to change to another identity; should you wish to incorporate your business to a limited company the process is straightforward.
Personal approach; a smaller company often has the capability to work closer with its clients, build a rapport and offer a higher level of service, giving a good competitive advantage.
Liability; the law makes no distinction between the business and the individual. The business owner is then subject to an unlimited liability. Should your business fail, you could potentially lose personal assets such as home, car etc.
Finance; banks are often reluctant to lend sole traders large sums of money. You may therefore find it difficult to expand your business unless you are willing to change your ownership status.
Economies of scale; you will be unable to take advantage of economies of scale in the same way as larger companies, who can afford to buy in bulk. This may mean you have to charge higher prices in order to cover your costs.
We carry out an analytical review and quality checks before submitting your tax return. We ensure compliance and timely submission.
Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy.
The VAT return shows the calculation of the amount of VAT due on sales minus the amount of VAT reclaimable on purchases. The result is the amount payable to HMRC.
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation
Within a company, payroll is the combination of all of the financial records of their employees' salaries, wages, bonuses and deductions. In accounting, the term payroll signifies the amount that has been paid out to employees for the services they have done for the organization within a certain period of time
Corporation tax is a tax placed on the taxable profits of limited companies and other organisations such as clubs, societies, associations, and unincorporated entities.
You can register online with Companies House if your company is limited by shares and uses standard articles of association (known as 'model articles'). Otherwise, you must use a different method of registration. Your company will also need to register for Corporation Tax within 3 months of starting to do business
Working outside the scope of IR35 and knowing what is claimable are the two most important issues when freelancing or contracting.
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