04 Dec

Tips for Sole Traders

Tips for Sole Traders:

Keep those receipts!
• If you want to be sure that an expense is verifiable, keep the receipt/invoice. However getting a receipt from a parking meter when you are visiting a customer can prove difficult. So speak to us at the year-end and make sure we have a list of all those items that are not recorded in your books because you couldn't obtain a formal receipt, i.e. car parking, car washing, laundry and cleaning of overalls and so on. As long as the expense is commercially justifiable there should be no problem incorporating the estimated items.

File your tax returns on time!
• Don't forget, £100 fine if you file your 2006/2007 return after the 31 January 2008. Ensure you have got all your information to us by 30th November at the latest to avoid this!

Register as an employer!
• Don't forget to register with HMRC as an employer if you take on staff. Then let us know your employers PAYE reference number, the HMRC employers hotline number is - 0845 60 70 143

Pay your self assessment tax on time!
• Save yourself automatic penalties and interest. If you are one month late the Inland Revenue will increase the tax due by 5%, a late payment penalty. Interest will run from the due date, 31 January or 31 July.

Profit does not equal cash!
• Don't forget that the timing of sales and purchases is important. Your profit is based on when things are done, not when they are paid. This means that you can have a tax bill but no cash! Keep an eye on your profit figure in your monthly accounts and give us a call a couple of months before the year end to discuss.

Your home!
• The owners of most small businesses will work from home at least occasionally, even if just to do the paperwork sometimes. In these cases, the taxpayer may claim an appropriate proportion of his or her household bills as a business expense, including heating and lighting costs and council tax. Here the proportion is generally based on the number of rooms in the house, excluding bathrooms, toilets, kitchens and hallways.

Get a quote now
Start Your 2 Month Free Trial, get a quote!

Take 30 seconds to get a quote and see how we can help you.

Get a Quote