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Sole Trader Accounting Services

Even though operating a sole trader is one of the simplest ways to be self-employed, it doesn’t mean that you can shirk your accounts and tax responsibilities. Not only that, but if things are going well, you’ll need to keep on top of when it might be best for you to start trading as a Limited Company. Luckily for you, our sole trader accounting services are ideal for exactly this.

We’ll keep you tax efficient as a sole trader, and continually monitor that a sole trader is the best accounting structure for you. We’re the expert accountants for sole traders and small businesses.

Why Choose Mazuma for Sole Trader Accounting?

A Personal, Friendly Touch

At Mazuma, you’ll be paired up with a dedicated accountant who will get to know you and your business. That enables us to provide a personalised accounting solution tailored to your goals and needs, whether you want to grow your business, become more tax-efficient, or just simplify your accounting processes.

Accounts Managed on Your Behalf

Keeping up with your monthly accounts can be a challenge. Whether you have piles of receipts to deal with every week or you’re just struggling to differentiate your personal expenses from your business, we can help. We’ll take over the management of your monthly account, allowing you to focus on enjoying running your business.

Tax consultation

Self-Assessment Tax Return Included

For many self-employed business owners, submitting an annual self-assessment tax return is the least enjoyable time of the year. At Mazuma, we’ll take away the pressure and hassle of having to submit your return yourself. Your dedicated accountant will file your taxes on HMRC, ensuring your business is compliant with current regulations.

Unlimited Monthly Advice

Your dedicated accountant won’t only manage your monthly accounts but also offer financial advice and guidance whenever you need it. For example, if you have any questions or concerns regarding your sole trader business, you can reach your accountant via phone or email for prompt and informative communication.

Stay Easily Informed

Though our aim is to take on 100% of the responsibility of managing your sole trader accounts, we won’t keep you in the dark about our progress. At the end of every month, you receive a review of your accounts to stay up-to-date with your financial situation.

Manage Invoices Hassle-Free

When you sign up for Mazuma’s sole trader accounting services, you have free access to our automated invoicing software, allowing you to send invoices at the touch of a button. If you find that making, sending, and chasing invoices is a significant drain on your time, using our invoicing software should help you to streamline, otherwise, cumbersome, the process.

Flexible Accountancy Options

Working with us is remarkably simple. You can use our online accounting software to submit your receipts and invoices or email them to your dedicated accountant. Alternatively, you can post your information for free at the end of every month using our purple envelopes scheme. In short, how you manage your receipts and invoices is entirely up to you.

Easily Scalable Service

You might have only started your self-employed business. That’s fine. Your business doesn’t have to be a specific size or hit an inevitable annual turnover to work with us. But if you do scale, know that we’ll mold our services to support your company’s growth. Whether you take on staff, double your rates or switch to a limited business, we’re here to help.

Should you be a Ltd Company or a Sole Trader?


Simplify Your Sole Trader Accounting With Mazuma

Making the jump from regular employment to running your own self-employed business can be daunting. There are undeniable benefits to managing your own hours and working when you want to, not when you have to. But with the freedom of being a sole trader comes the responsibility of keeping on top of your finances.

As a sole trader, you don’t receive a fixed annual salary. Your income may jump up and down on a week-by-week basis. In some months, you might need to spend more of your wages on expenses, while in others, you might land several deals at once, earning a chunk of money in one go.

Trying to manage your fluctuating accounts can be a challenge, and keeping on top of your receipts, bills, and invoices can be even more of a nightmare. As a self-employed business owner, you have to manage everything, from your marketing and sales to the day-to-day of taking orders and getting the job done. It’s hardly surprising if you don’t have time to fit in your monthly financial responsibilities.

You don’t have to be a one-man-band as a sole trader. Mazuma can take away your accounting duties, giving you the freedom to focus on other important jobs.

Your dedicated accountant will handle your bookkeeping for you. Using our online accounting software, we’ll track your income and expenses. All you’ll need to do is send us your receipts, either by scanning them into your accounting software or sending them for free in the post.

We’re a solely online national accountancy firm. This means you don’t have to waste time meeting up with your accountant in person or visiting our office for monthly catch-ups. We understand that the life of a sole trader can be tremendously hectic, so we keep our means of communication efficient. If you need to talk, just call or email your accountant. It’s that simple. 

We do more than just manage your money, however. We also prepare monthly reports and offer advice when you need it. We’re here to help you become more tax efficient, scale your business, and feel less overwhelmed as a self-employed professional.

We also help you pay income tax and national insurance on your profits—hands-down, one of the biggest responsibilities of being a sole trader. Many sole traders feel overwhelmed with the task of accurately logging their income and submitting their self-assessment tax returns. That will become more difficult as Making Tax Digital is brought into play, and every sole trader and limited company in the UK must use accounting software to track their accounts.

We’ll complete your self-assessment tax return and pay your taxes and National Insurance on your behalf. In this way, you don’t have to worry about being compliant with HMRC. So, bid your goodbyes to the last-minute stress of getting your accounts in order and choose Mazuma.

Our goal is to reduce your duties as a sole trader and help you focus on the work you really enjoy. When you’re ready, click here to get a free quote and see how we can simplify your sole trader accounts today.

What is a Sole Trader?

A sole trader is the legal status used when you run a business as an individual (i.e. not through a Ltd Company). It means that there is no legal distinction between you as the business owner and the business as an entity.

As a sole trader there is no legal obligation to run a separate business bank account (although we highly recommend that you do).

When you run your business as a sole trader you pay your tax based on the net profit that your business makes. Drawings that you take from the business are not taxed like they would be if you paid a salary. Likewise, your drawings are not a tax deductible expense!

Setting up as a Sole Trader

It’s incredibly easy to set up as a sole trader. You’ll need to let HMRC know within 12 weeks of receiving your first income, although we recommend that as soon as you decide to start trading, you tell HMRC straight away.

Telling HMRC will mean you registering for self assessment as a sole trader.  HMRC will send you your unique tax reference number (UTR). Your UTR should be used on all communication with HMRC, as well as being entered when you submit your tax return.

Then you’re free to start trading. Simple as that!

The Advantages of being a Sole Trader

Being a sole trader is one of the simplest ways to start running your own business. You just register with HMRC, decide on your name and off you go!

You won’t have to deal with any of the additional admin or accounts and tax returns that a Ltd Company has to deal with –  such as submitting company accounts to Companies House, doing a confirmation statement or appointing directors.

You’ll still need to keep records of all of your income and expenses in an HMRC approved format. We recommend doing this digitally ready for when Making Tax Digital goes live for sole traders in 2023. But with a service like ours, we can take care of all of that for you.

Being a sole trader offers you a little more privacy too. A Ltd Company has to submit their accounts and details of the directors of the company to Companies House, where anyone can look them up. But a sole trader only has to submit them to HMRC and no one but you and HMRC (and your Accountant!) will see them.


The Disadvantages of being a Sole Trader

One of the main disadvantages of being a sole trader is the risk to you personally in the form of unlimited liability.

In the eyes of the law, there is absolutely no difference between you and your business. So if you get in to debt, or somebody takes legal action against you, it is you personally who is liable rather than a legally separate company.

Depending on how much profit you make, operating as a sole trader may not be the most tax efficient set up for your business; so it’s worth getting an Accountant to look at whether it really is the best option for you.

Some companies may only want to offer contracts to Limited Companies – so if you are chasing work or undertaking a tender, check whether they would allow you to do so as a sole trader.


Do Sole Traders Need Accountants?

No. Having an accountant isn’t a legal requirement for a self-employed business owner in the UK. But many people find that instead of trying to get to grips with free bookkeeping software or simply winging it come tax season, it’s far better to have an expert with accounting experience who can keep bookkeeping records and submit taxes on their behalf.

If your financial duties are stopping you from running a successful business, investing in an online accounting service makes sense.

How Much Does an Accountant Cost for a Sole Trader?

The short answer is that it depends. A traditional accounting firm offering a fixed accountancy service may charge hundreds of pounds per month. With Mazuma, on the other hand, you pay a fixed monthly fee that doesn’t change if your business transactions increase. We offer flexible accountancy packages designed to be affordable for all budgets. And we’ll never hit you with a surprise fee at the end of the financial year, too. 

What Accounts Does a Sole Trader Need?

As a sole trader, you don’t need to file your accounts on a public body, as a limited company registered on Companies House would need to do. Your business affairs are private. You should, however, prepare a balance sheet and a profit and loss account on an annual basis.

Sole traders are personally liable for their finances, including any debts that occur. Accurately keeping track of your business’ finances won’t only help you avoid penalties from HM Revenue but ensure you’re on top of your spending and are less likely to get into debt.

Why Should I Choose Mazuma Over a Local Accountancy Firm?

If you’re looking for the convenience of an accountant in your pocket, you’ll love Mazuma. We pair you with your own dedicated accountant, who will manage your bookkeeping behind the scenes, freeing up your time to focus on other aspects of a business.

We know that sole traders lead very busy lifestyles, and we aim to be more flexible and low-hassle than traditional accountancy firms. We offer a range of tailored solutions, so there’s something for every budget. You’re not obliged to opt-in for accountancy services that you may not need, and you won’t need to learn how to use our accounting software as our customer.

Why Is Mazuma Ideal for Small Businesses or Sole Traders?

Sole traders and small business owners love Mazuma for one reason: We offer a friendly, reliable, and professional service. Our customers are extremely satisfied with our chartered certified accountants. Our goal is to show to as many small business owners as possible that our untraditional online accounting style is the future.

Rest assured that we offer an excellent service to all sole traders who choose to work with us, no matter how complicated or simple their accounting requirements are.

What Are the Details You’ll Need From Me?

When you sign up for our sole trader accountancy services, our accountants will ask for the following details:

  • Your full name and ID (i.e., drivers’ license or passport);
  • Your date of birth (DOB);
  • Your current address and proof you actually live there;
  • Your mobile and/or home phone number;
  • Your National Insurance (NI) number;
  • Your company name and number;
  • Your Unique Tax Reference (UTR) number;
  • Your VAT registration number;
  • Documentation of your previous tax return.


Some of the above information may not apply to you, though. In every case, we will let you know what we need when we contact you.

How Much Responsibility Will You Take On?

As much as you ask us to! We speak to HMRC on our clients’ behalf and submit all their digital returns. If we receive any vital information you need to know, you can rely on us to keep you updated. We’ll also send you regular deadline reminders to notify you when your tax payments are due.

Do You Also Offer Limited Company Accountancy Services?

Yes. We have separate limited company accountancy services. Limited companies have more financial admin to maintain than sole traders, which can prove particularly challenging for larger businesses. We’re here to help with all aspects of limited company setup and accounting, from company registration to paying corporation tax, offering unlimited expert advice along the way. Learn more about our services for limited companies here.

I’m in the Process of Transitioning From a Sole Trader to a Limited Company, or I Plan to Do This in the future. Can Mazuma Help?

Yes. We understand that transitioning to a limited company is overwhelming, as there is more financial responsibility to take on and more to learn. Mazuma can help with every step of becoming a limited company. As previously mentioned, we offer a dedicated accounting service for the limited company model, and we have plenty of expertise in this area of finance, as well. 

What’s the Advantage of Having a Dedicated Accountant?

We work with many sole traders, so pairing each of our customers with their dedicated accountant helps us offer the most personalised service to everyone. Our dedicated accountants will get to know your own business over time, which, obviously, wouldn’t happen if you were simply passed from one accountant to another.

What Happens if I Sign Up for Mazuma’s Self-Employment Accounts Service Part-Way Through the Year?

If you sign up with us part-way through your financial year, our accounting technicians will likely need to play catch-up, ensuring your bookkeeping is up to date. For example, if you sign up with Mazuma in July, your first payment to us will be 4x our monthly price to cover April, May, June and July. Don’t worry, though. You can split your catch-up payment over the first three months of your contract if you like!

Once you’re all up to date, you’ll just pay your fixed monthly price. For us to complete your tax return, we simply ask that you have been a client of Mazuma for one year or have made the equivalent of 12 monthly payments.

If I Work With Mazuma, Do I Still Need to Do Anything to Contribute to My Self-Assessment Tax Return?

No. We complete tax returns on behalf of the sole traders who use our service. This includes inputting your information into HMRC and dealing with any responses or queries should they arise. We’ll ensure your income and business expenses are accurately detailed online and let you know how much tax you owe. On top of this, we can provide regular tax efficiency reviews throughout the year to help you save money when paying your taxes.

Do You Also Offer a VAT Return?

Yes. As well as our tax services, we’ll complete your VAT returns if you earn over the £85,000 threshold. We can also help you to get VAT registered if this is something you’re unfamiliar with.

Can You Help Me to Switch Accountants?

Yes. If you’re looking to move from a previous accountant to us, we can handle the switch for you. We’ll contact your previous accountant and obtain the information we need, like your accounting history. Your specialist accountant will then update our system with your details. Once done, we can get started on your bookkeeping immediately.

How Is My Quote Calculated?

The quote you’ll receive is based on the type of business you operate (i.e., sole trader – limited company – partnership), any extra work required outside of your basic packages, such as VAT returns or additional payslips. We will use your information to determine the average number of bookkeeping transactions. That tells us how much work we can expect to put in for your business monthly, and your quote is calculated based on this.

Are My Year-End Accounts Included in Your Service?

Yes. The fixed monthly price includes all your year-end statutory requirements and tax return, as well as your monthly bookkeeping, management accounts, payroll, VAT, and other services you have selected in your quote. This will all be outlined in the terms and conditions we send you when you start with Mazuma.

How to Get Started With Mazuma

Getting started is an easy four-step process:

Step 1: Get a Quote

First thing’s first, click here to get a free quote for our self-employed accountancy services. Once you know how much you’ll be paying, you can decide whether our service is for you.

Step 2: Send Us Your Details

To officially register, we’ll require some information from you. We’ll let you know what we need in the sign-up process.

Step 3: Get a Free Consultation

Chat to us about what you’re looking for in our service. We’ll answer your questions, outline our service, and get to know your business.

Step 4: Leave It to Us

We’ll set up your account and arrange to have a dedicated accountant assigned to you, who will be happy to answer your questions as they arise.

 Click here to get started today.

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