Sole Traders
There are many advantages of running a business as a sole trader, but there are challenges too. Having the support of an accountant will help your business thrive.
Get StartedWhy do sole traders need an accountant?
No matter what industry you’re in, being your own boss is one of the biggest benefits of being a sole trader. Being your own boss can also be one of the biggest challenges as everything is down to you, including your sole trader accounts and tax return.
If you don’t have much or any accounting experience, keeping on top of your business’s finances can be challenging and take up more of your time than you would like, especially when you’re trying to juggle it with carrying out your day-to-day business. Nowadays with ever-increasing compliance and stricter regulations as well as penalties, it’s essential that your books and accounts are accurate and up to date. This will be even more crucial one Making Tax Digital (MTD) is introduced.
Our team of knowledgeable and experienced sole trader accountants are on hand to help with all your accounting needs and be a reliable, long-term financial partner. We will support you throughout your company’s lifetime and adapt to your needs, no matter how much your business grows.

How can our accounting services help you?
Jan McDermott Chartered Accountants understand that running a business as a sole trader can be stressful and demanding enough without the extra pressure of keeping on top of your bookkeeping, staying ahead of tax deadlines, and ensuring your tax submission is correct and making the most of your tax allowances.
As accountants for a sole trader, not only will we help you with organising paperwork, documents, and receipts, but we’ll also ensure you’re never behind on tax return deadlines, VAT bills, outstanding invoices, and more.
VAT
If the taxable turnover of your business is more than £90,000 you need to be VAT registered. It can even be beneficial to become a VAT-registered business if your turnover is less than £90,000 to potentially recover VAT on your costs. Our specialist team of accountants for sole traders can help you with all aspects of VAT.
How We Can Help

Unlimited professional advice
Your dedicated sole trader accountant from our team will be on hand to answer questions and offer advice to support your business growth.

The personal touch
When you’re one of our clients we will get to know your business in detail to understand your challenges and help you overcome them with a warm and friendly approach.

Real-time data anytime you need it
Our financial capabilities mean you can have access to real-time financial data and key figures so you can confidently take your business to the next level.
Frequently Asked Questions
Yes, you must register with HMRC for Self-Assessment as soon as you start trading so that you can report your income and expenses correctly.
Allowable expenses may include travel, equipment, office supplies, professional fees, insurance, and a portion of home-working costs. We’ll guide you to make sure you claim everything you’re entitled to.
Sole traders pay income tax at basic or higher rate on profits after all expenses and allowances, along with Class 2 and Class 4 National Insurance contributions. We can calculate your liability and ensure you don’t overpay.
It’s not a legal requirement, but it’s strongly recommended to keep business and personal finances separate. This makes bookkeeping and tax filing much easier.
You must keep accurate records of your sales, expenses, invoices, receipts, and bank statements. We can help you set up simple, effective systems to stay organised.
Yes, under MTD, most sole traders will ultimately need to keep digital records and file tax returns using approved software. We’ll ensure you’re fully compliant when MTD becomes mandatory for you.
If your turnover exceeds £90,000, VAT registration is mandatory. Even if it doesn’t, registering voluntarily may be beneficial in some cases. We can assess what’s best for your situation.
As a sole trader, you don’t pay yourself a salary; instead, you withdraw money from the business as drawings. You pay tax on your profits, not drawings.
Absolutely. We provide proactive advice on cash flow, profit growth, tax planning, and business strategy, so you can make informed decisions and scale your business with confidence.