Sole Trade Accounts and Useful Tax Advice
While setting up a business, you will definitely need the services of a professional accountant. But as most of the sole enterprise businesses don’t have the capacity to hire a full-time professional accountant, they prefer to hire the services of accountants for contractors. These are self-employed accountants who provide services for fixed fee, hence putting the little financial burden on sole traders. Every sole trader is required by law to file proper tax record for his income and the income gained by his business. Tax records of the business would be filed separately from the owner as business is considered a separate entity from its owner.
Whenever a person wants to start a separate business, he needs to register himself properly as a sole trader with HM Revenue & Customs where he will get Unique Taxpayer Reference (UTR) number through which he can send his tax return to HMRC.
As the business of sole trader is considered to be a small business, so you could hire the services of small business accountant in order to maintain the records of your business. Your accountant will properly guide through the procedure of registering a sole trader business. Before a person needs to register he would requiring his national insurance number, his personal details and his accurate business details. You have to keep it in mind that you have to register for your business before the deadline of tax return. In case of late registration you have to pay a penalty.
If you have to file for a tax record of your business then following the regulations of HMRC you would have to properly record you balance sheet and income statement of every year. This would be done by hiring the services of a professional and registered accountant. That accountant would keep the record of the entire book keeping of your business. All the expenses, the income, any depreciation would be recorded in the accounts. While all the assets or liabilities of your business, the new assets that you have acquired, those assets which you have sold, properly depreciated value of the assets would be properly accounted for in all the records on yearly basis.
In order to file proper tax returns, maintaining proper records of the business is very necessary. And for that you would be required to hire the services of a professional accountant who would maintain your financial records , file your tax returns and would properly guide you that where you can claim allowances or reliefs in your tax returns.
Once the business is settled, you have to maintain your accounts properly in order to file on the basis of Self Assessment. As the business is considered to be a separate entity from the owner, the proper income and expenses of the owner would be accounted for in the self assessment records. As an owner of the business you would be required to keep a fool proof record of your expenses which you could keep by saving all the receipts for your expenses. Expert IR35 accountants are available to guide the people in this aspect.