Sole Traders

As a sole trader you run your own business as an individual and are self-employed. You keep all your profits after you have paid income tax and national insurance where applicable.

Setting up as a sole trader

A sole trader is required to register as a sole trader with HMRC. HMRC then send you a unique taxpayer reference, which is used to file your tax return.

What taxes do sole trader’s pay?

Sole traders pay income tax at progressive rates from 0% to 45% dependant on your level of income. Further to this class 2 and class 4 national insurance is payable.

Your Responsibilities

HMRC require you to file an annual tax return on 31 January, following the year of assessment. By way of example for the period 6 April 2018 to 5 April 2019 the self-assessment tax return is due by 31 January 2020.

How Emulous Accounting can help

At Emulous Accounting we can help you with:

Registering your business with HMRC for tax purposes.
Calculate the businesses taxable profits.
Provide advice on allowable expenses to help maximize tax savings.
Complete and submit your tax return using HMRC approved software.
Provide advice to you on tax payable to HMRC.

For more detailed information and to arrange a free consultation, please contact us.

13 Balmoral Road

Willesden Green

London

NW25DX

Company Number

11457978