Getting registered
Help with registering for Self Assessment and your first tax return.
- Registering as a sole trader
- Your first return
- Checking the £1,000 rule
For sole traders
Sole Trader AccountantsStart simply. Know when to change.
Find an accountant who works with sole traders. They can help you register, keep simple records, file your Self Assessment return and decide when it might make sense to become a limited company. The Business Review Co. introduces you to an independent accountant, so you can compare their help and fees before you decide.
Free initial review · No obligation · Find better-value sole trader accountants
Running as a sole trader
Running as a sole trader
Simple set-up. Clear next steps.
- Registering
- Self Assessment with HMRC
- Records
- Income, costs & receipts
- Growing
- When to consider a company
The Business Review Co. helps you find a provider. Your provider agrees and carries out the work.
Support, at the right level
Sole trader accounting. Simple, and done properly.
A sole trader has fewer filings than a company, but the owner is personally responsible for the business and its tax. An independent accountant can help you set up well and keep things simple.
Record-keeping
A routine for recording income and costs that suits the size of your business.
- Spreadsheet or software set-up
- Receipts and invoices kept
- Cash basis records
Planning ahead
Advice as your business grows, from VAT to becoming a limited company.
- VAT registration timing
- Making Tax Digital readiness
- Incorporation comparisons
Help with business plans, loans, insurance and legal set-up is usually separate. Ask what the accountant covers.
Review the cost. Understand the value.
Sole trader accountants: paying for the right level of help.
Some sole traders only need a tax return each year. Others want help every month. Match the service to how much of the work you want to hand over.
Review my support & costsFree initial review. Any saving depends on your current fees and the service you choose.
- Once a year or ongoing
- Do you need help once a year, or bookkeeping and reminders throughout the year?
- Software
- Will you use spreadsheets or accounting software, and who pays for it?
- Advice as you grow
- Is advice on VAT and becoming a company included, or charged when you ask?
Starting out
Registering as a sole trader. What HMRC needs from you.
Becoming a sole trader is the simplest way to start working for yourself. You and the business are the same in law, which keeps the paperwork light but leaves you personally responsible for all of the business’s debts.
Registering for Self Assessment.
You register as a sole trader by registering for Self Assessment. You need to do this if you earn more than £1,000 in a tax year, which runs from 6 April to 5 April. If you are already registered for another reason, you register again as a sole trader. Registering late, or not at all, can bring a penalty.
Your yearly tax return.
Once registered, you send a Self Assessment return each year, and HMRC works out the Income Tax and National Insurance due on your profits. Online returns and the payment are due by 31 January after the tax year ends.
VAT.
You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days. You can choose to register before then.
An accountant can check what you need to register for and when, and can deal with HMRC for you once you give them authority.
Record-keeping
Sole trader record-keeping. Simple habits that save time.
Good records make your return quicker to prepare and help you claim the costs you are entitled to. They do not need to be complicated.
What to record.
Keep a record of all your sales and income, all your business costs and the receipts and invoices behind them. Sole traders usually use the cash basis, which records income and expenses when money comes in and goes out.
How long to keep them.
Keep your records for at least 5 years after the 31 January submission deadline for the tax year they relate to.
Allowable expenses.
Costs such as office costs, travel, stock, insurance, premises costs and advertising can be allowable when they are for the business. Where something is also used privately, only the business part can be claimed. You can use the £1,000 trading allowance instead, but then you cannot claim expenses.
Going digital.
Making Tax Digital for Income Tax is reaching sole traders in stages, depending on qualifying income in an earlier tax year: over £50,000 from 6 April 2026, over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028. Moving to compatible software early can make the change easier.
Becoming a company
When to consider incorporating. Sole trader or limited company?
Many sole traders ask whether to become a limited company as their profits grow. There is no single turning point, and the answer depends on your figures and your plans.
What changes with a company.
A limited company is legally separate from its owners. It is registered with Companies House, files accounts and a Company Tax Return each year, sends a confirmation statement at least once every 12 months and pays Corporation Tax on its profits. Directors usually take money out as salary, dividends or both, and each comes with its own records.
What stays simpler as a sole trader.
A sole trader sends one Self Assessment return a year and keeps records of income and costs. There are no company accounts to file and no payroll to run for yourself.
Points to weigh up:
- your expected profits, and whether they are likely to keep rising;
- how much risk the business carries, since a sole trader is personally responsible for its debts;
- whether customers or contracts expect you to trade as a company;
- the extra time and accountancy cost a company brings.
An accountant can compare the tax and costs for your own figures before you decide. The Business Review Co. can introduce you to an independent accountant who works with sole traders and small companies.
How it works
A simple start. A clear agreement.
Start with a free initial review. You choose whether to go ahead after discussing the service and fees with an independent provider.
- 01
Tell us about your business
Let us know what you do, how long you have been trading and the help you need. No records are needed.
- 02
Explore an introduction
We review your enquiry and agree any introduction with you. An independent accountant can then discuss your records and return.
- 03
Agree the scope & fees
Confirm whether you need a once-a-year service or ongoing help, and the fee for each, before work starts.
The Business Review Co. is an introduction service. Work is carried out by an independent provider and paid for separately. We may receive an introduction fee. How we are paid.
Guides
Guides to business accounting
- bookkeeping for a limited company
What bookkeeping involves for a UK limited company, the records the law expects, how long to keep them and who can do it.
- prepare company accounts
What a UK limited company's annual accounts contain, who signs them, the filing deadlines and what happens if they are late.
- Company Tax Return deadline
Who files a Company Tax Return with HMRC, filing it with software or on paper, how to read the CT600, deadlines, late penalties, appeals and amendments.
- filing company accounts
How a UK company files accounts at Companies House: filing routes, normal deadlines, first accounts, extra time and what late filing may mean.
- VAT filing and payment dates
When VAT returns and payments are due, how annual accounting changes the date, ways to pay HMRC, refunds and what happens if a deadline is missed.
- whether you need a bookkeeper or an accountant
The practical difference between a bookkeeper and an accountant for a UK limited company, where the roles overlap and what to check.
Your questions
Sole trader accountants: common questions.
The scope, fees and responsibilities to discuss when choosing your provider.
Do I need an accountant as a sole trader?
No. You can register, keep your records and file your own Self Assessment return. Many sole traders use an accountant once their income or expenses become harder to track, when they register for VAT or when Making Tax Digital for Income Tax applies to them. You stay responsible for your return and your tax whoever prepares it.
Is Ltd better than sole trader?
Neither is better for everyone. A sole trader has simpler paperwork but is personally responsible for the business’s debts. A limited company is legally separate from you but files accounts, a Company Tax Return and a confirmation statement each year, and it is taxed differently. Your profits, risks and plans all matter, so an accountant can compare both for you.
Can I find an online accountant for a sole trader?
Yes. Many accountants work with sole traders online, sharing records through cloud software or a secure portal and talking by phone or video call. Others offer face-to-face meetings. Check which software they use, who your contact will be and what the fee includes. The Business Review Co. can introduce you to an independent accountant who suits how you like to work.
How much does a sole trader accountant cost?
Most charge a fixed fee for the annual Self Assessment return, a monthly fee that also covers bookkeeping and reminders, or an hourly rate for advice. The price depends on how many transactions you have, how tidy your records are, whether you are VAT registered, whether digital updates for Making Tax Digital are needed and how much support you want during the year.
Can I run a Ltd company and be a sole trader?
It can be possible to run a sole trader business and a separate limited company at the same time. They are treated as separate businesses. The company files its own accounts and Company Tax Return, and your sole trader profits go on your Self Assessment return. An accountant can check how this would work for you and keep the records apart.
For official guidance, see GOV.UK: become a sole trader.
Let’s make a start
Let’s keep your business simple.
Tell us what you do and the help you need. We’ll reply about the next step.
For UK sole traders, the self-employed and limited companies.
Free initial review · No obligation · No documents needed
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