Running your own business as a sole trader means you are working for yourself. As self-employed individuals, sole traders will have to complete a self-assessment tax form. Owning a successful business encompasses a lot of obligation and personal accountability.
Sole Traders will also be held responsible for:
- Income tax;
- Class 2 and 4 of National Insurance tax; and
- Registering for VAT if your company surpasses the VAT threshold.
A sole trader tax return should be filed by January 31 for the previous tax year. Sole trader taxes can deduct several expenses such as travel, overheads and deliveries. Therefore, it is important to keep these details correctly documented as you will need proof for your claim.
Filing taxes at the end of a tax year can be a very daunting process. This is why you should put money aside to have money to pay those fees responsibly. If you are late, the HM Revenue and Customs will fine you. Therefore, it is best to seek legal advice sooner rather than later in order to best prepare for your tax return.
What do I do next?
Contact us online or speak to one of our dedicated specialists on 0207 998 7777 for a free initial consultation. With our vast experience in the field, our bilingual speaking team will work with you to ensure this process runs as smooth as possible. All information you provide us with is treated with the utmost confidentiality.
We will contact you no later than the next working day to arrange a meeting at our offices in London W1 to advise on the agreement.