Welcome to AudTax, accountants for sole traders
When you choose to work with AudTax, you’ll get the support of a team of dedicated, highly responsive accountants with years of experience working with small to medium-sized businesses.
Self-employment can be very rewarding but also very challenging. If you are trying to get your sole trader enterprise off the ground, we can provide the extra hands and additional brainpower you need to make it happen. From bookkeeping to strategic tax planning, our advice and services will help your business to flourish.
If you’re an established sole trader looking for more support, we make it easy to move on from your previous accountant. Just leave the paperwork and formalities to us, and we’ll ensure a smooth transition.
To book a free discovery call, please fill in our contact form today.
What do accountants for sole traders do?
A professional accountant can provide all the support you need to relieve the burden of managing your sole trader accounts and help your business thrive. A typical sole trader accountancy package includes the basics like bookkeeping as well as helping with your self-assessment tax return. As your business grows, you may wish to add services like management accounting to help you make better business decisions.
Why is accounting important for a sole trader?
You can choose to manage your own accounts, but starting your own business as a self-employed sole trader is extremely hard work. Managing your business finances can feel like one task too many. A professional accountant can save you valuable time to allow you to focus on your day-to-day operations.
A sole trader has certain tax and reporting obligations to fulfil with HMRC, with hefty fines for non-compliance. By using a professional service, you can ensure that you fulfil your commitments accurately and on time.
Another benefit of using sole trader accounting services is tax efficiency. Your dedicated accountant can help you identify tax-deductible business expenses to reduce your liability, as well as conduct regular tax efficiency reviews to highlight any valuable savings.
In addition to all of these benefits, having access to reliable, professional advice can be a huge weight off your mind. So, rather than thinking of a personal accountant as just another expense, consider it an investment in you and your business.
Our sole trader accounting services
From helping with your annual self-assessment tax returns to strategic advice on tax matters, our team of dedicated accountants can help relieve the burden of managing your sole trader accounts. Among our many accountancy services for sole traders, we offer the following:
Self-assessment tax returns
As a sole trader, you are required to pay income tax and National Insurance via the self-assessment system each tax year. We can help you identify every last deductible expense and submit your self-assessment tax return using software compatible with Making Tax Digital (which is due to launch for sole traders in April 2026).
Good bookkeeping is fundamental to successful financial management. At AudTax, we can help you implement simple bookkeeping software in order to maintain accurate records and avoid any financial hiccups.
Cloud accounting software
Cloud accounting technology has revolutionised sole trader accounting. At AudTax, we use all of the leading cloud accounting packages such as Xero, Quickbooks and Sage. This software is easy to use and works in real-time, eliminating the need for version control and enhancing accuracy. And with all of your financial information in one place, annual tax returns are far less onerous and complicated.
At AudTax, we are dedicated to saving hard-working sole traders as much tax as possible. That requires careful and regular tax planning to identify short and long-term savings. A good tax strategy could save you thousands and easily cover the cost of hiring a sole trader accountant.
Frequently asked questions about sole trader accounting
Can an accountant help set up a sole trader business?
Setting up as a sole trader is very straightforward; it’s just a case of registering with HMRC and submitting an annual income tax return. Having an accountant becomes valuable by helping business owners establish good accounting procedures, stay compliant and be more tax efficient.
Are sole traders only subject to income tax?
As a sole trader, you must pay National Insurance contributions as well as income tax. You must also become VAT registered if you exceed the turnover threshold of £85,000.
You are responsible for calculating your own income tax, NI contributions and VAT returns using compatible accounting software and must ensure tax is paid in a timely manner.
When should a sole trader become a limited company?
There are many advantages to being a sole trader, such as simplicity, autonomy and retaining all the profits. However, once your turnover begins to grow, it may be beneficial to consider an alternative business structure.
Many sole traders choose to incorporate their business to achieve limited liability status (as opposed to being personally liable for your company’s debts) and to become more tax efficient.
Limited companies are required to register with Companies House and submit annual accounts such as a balance sheet and profit and loss account. They must also pay Corporation Tax.
To decide if the time is right for you to transition from a sole trader business to a limited company, it is wise to consult a professional accountant to crunch the numbers and ensure you understand your new liabilities as a company director.
How much do accountants charge sole traders?
Sole traders’ accountants usually charge a monthly fee. The cost depends on the complexity of your business affairs and whether you wish to outsource some or all of your accounting tasks.
At AudTax, we can make a thorough assessment of your accounting needs before putting together a bespoke sole trader accounting package. You will be charged a fixed price each month, with no hidden costs.