As a self-employed sole trader you will need to complete a self assessment tax return when it comes to paying your tax. This can be quite a complex process and can be quite a steep learning curve.
All taxable income must be reported on a self assessment tax return however non-taxable income and ISA interest is not reportable. You also have a personal allowance to take into account. You will need to include your salary and your trade profits as well as your rental income and bank interest and dividends.
SELF ASSESSMENT TAX RETURN : DUTIES OF A SOLE TRADER
It is the sole trader’s responsibility to tell HMRC that they are in business and need to file a self assessment tax return. Business owners must:
Although using an accountant isn’t a requirement, it is often a very good idea. As a sole trader it is unlikely that your area of expertise is in finance, and therefore it can be very difficult to grasp the various complexities of the tax system and to make sure that you don’t overpay or underpay tax. It can also be all too easy to miss the deadline and to face a penalty from HMRC. As skilled and experienced accountants The Accountancy Solution can ensure that your tax return is accurate and submitted in a timely manner for your peace of mind.