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Cheap Accounting Services for Sole Traders

Being a Sole Trader, running your own business and juggling a number of different balls at once is tough.  This can take its toll on the amount of free time you have to spend on the important things in life. 

Managing your sole trader accounts can often get pushed to the bottom of the to-do list. 

Mazuma can help.  Our cheap accounting service for Sole Traders starts at only £28/month + VAT, we will take care of your sole trader accounts, bookkeeping and tax so you don’t have to.

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.

Benefits of Mazuma’s Sole Trader Accounting Services

You won’t have to meet your accountant face-to-face

As a sole trader, we know you don’t have a lot of time to spare in your day. You’ll receive an excellent service without wasting hours of your day meeting with your accountant.

Affordable for your business

We provide quality accountancy services, without the price tag to match. This means you can invest that money into other parts of your business.

Focus on the daily running of your business

It’s important you focus on the core elements of your business, like perfecting your products or services, and building relationships. Leave the finances to us.

Monthly support and advice

Sending us your accounts monthly means you can keep track of your finances easily, and won’t be playing catch-up further down the line.

Keep track of your cash flow

Our service means it’s easier than ever for you to see how much money you’re making and how much you may owe HMRC.

Expert support and advice

Our accountants review your accounts monthly to offer support and advice on how you could make your business more tax efficient and save you money. 

July promotion. 10% off your first 6 months with Mazuma

Book a call with us today, we will talk you through our Accounting Services Subscription and how easy it is to lead a stress free life when it comes to accounting, bookkeeping & tax. We'll crunch the numbers so you don't have to!

Sole Trader Accounts FAQ's

We do understand that we're not a traditional accountancy firm and that our multi award-winning re-vamped way of working might not be everyone's cup of tea.  We think that most small businesses could benefit from a bit of Mazuma magic, but take a look at the reasons why we may not be right for you before you make a final decision! To make it easy we also explain how you can switch to us.
If you sign up with us part way through your financial year it is very likely that there will a catch-up of bookkeeping and accounts work to be done to get you up to date.   For example, if your financial year commences in April and you sign up with Mazuma in July, your first payment to us will be 4 x £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 will just pay your fixed monthly price.  In order for us to complete your year end accounts and tax returns we simply ask that you have been a client of Mazuma for one year or have made the equivalent of 12 monthly payments.
The quote is based upon the type of business you operate (sole trader/ limited company etc...), any extra work required outside of your basic package such as VAT returns or additional payslips, and the what we would consider to be an average number of bookkeeping transactions
Yes.  The fixed monthly price includes all of your year end statutory requirements and tax returns 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 our terms and conditions we send you when you start with Mazuma.

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