We offer sole-trader accounting services in Birmingham to perfectly match your business.
As Birmingham accountants for sole traders, we look after our sole traders and their accounts.
We will also help you make confident financial decisions to grow your business.
So, what does it mean to be a sole trader in Birmingham and the West Midlands?
To be a sole trader means having complete control over your business. It allows you to make critical business and financial decisions fast and efficiently. You retain all the profits but you are responsible for paying tax with HMRC.
You are also responsible for the success or failure of your business and you will be personally liable for any and all business debts.
If any of the following apply, you will have to establish yourself as a sole trader.
– Between 6 April 2020 and 5 April 2021, you earned more than £1,000 through self-employment.
– To be eligible for benefits, you want to pay voluntary Class 2 National Insurance contributions.
You will automatically be classified as an independent “Sole Trader” once you have started working for yourself. This applies even if HMRC has not been notified.
What is the best way to register as a sole trader in Birmingham and West Midlands?
HMRC will need you to inform them that you are requesting a Self Assessment tax return. This can be done online, or by printing and posting the appropriate form on HMRC’s site.
What’s the next step?
HMRC will give you a Unique Taxpayer Reference (UTR), and they’ll create an account online for your Self-Assessment.
HMRC will send you an email with your activation code to activate your online account. Find out more about your tax situation, such as how much you have paid, what your tax code is, and when your next filing date.
The advantages and disadvantages of being a sole trader
Many self-employed people in the UK choose to be sole traders. A sole trader can be defined as a person who is self-employed. Many potential self-employed people choose to be sole traders or limited companies. Here are some of the advantages and disadvantages of being a sole trader.
You can make faster decisions – Larger companies often have many levels of management and owners. These stakeholders all have competing goals making it difficult to make simple decisions. As a sole trader, you are responsible for all decisions.
Accounting is cheaper – Only limited companies are required to prepare a cash flow and balance sheet, while sole traders only need to create a profit and loss statement. Because sole traders have less work, accountants charge less for them than those in limited businesses.
All profits retained – The sole trader keeps all of their profits after tax. You don’t have to pay Corporation Tax and you usually do not need employees.
Privacy – Limited businesses don’t have the right to protect certain information. They must register with Companies House to ensure that it is available to all.
Personal liability – Sole traders cannot be legally separated from their business, so they can personally be held responsible for all debts. The sole trader may lose their income but can also be liable for any losses incurred.
Harder to find large clients – Many businesses, particularly larger ones, view sole traders as small and unreliable. A limited company may be managed and owned by only one individual, but it’s often much more visible.
Sick pay is not available – A sole trader who becomes unwell will not receive any payment and will lose the services they provided for customers or suppliers. Clients may seek out alternatives if you’re unable to perform your service.
Accounting is still necessary – Sole traders must keep receipts and pay taxes (and VAT if they make more than £83,000). For a monthly fixed fee, we are the #1 sole trader accountants in Birmingham that will handle all of your accounting.
To ensure that you get the highest quality service, our Birmingham Sole Trader accounting packages come with a dedicated accountant.
Our experienced sole trader accountant in Birmingham will take the time to get to know you and your business giving you the best business and tax advice.
SAR302 Self-Assessment Return – Sole trader accounts and tax returns – HMRC will be submitted on your behalf by us. As the best sole trader accountants in the West Midlands, we can advise you about tax rates, payment dates and other details. Our clients also receive financial advice that supports business decisions.
Our award-winning software is ideal for sole traders – You can choose from three award-winning cloud accounting providers in the UK: FreeAgent, Xero or QuickBooks. With our highly recommended sole trader accounting service you get the software cost included in your package.
We will make sure you don’t miss any tax deadlines and never get hit by a hefty fine ever again – Looking for the best sole trader accountant in Birmingham? We’ll send you reminders by email and make follow-up calls to remind you when it is time for your tax filing or payment.
FREE planning and advice in tax matters – Our only goal as experienced sole trader accountants in Birmingham and the West Midlands is to provide a valuable service by helping you pay less tax, save more money and grow your business. Regular tax efficiency reviews are a standard feature in the Sole Trader accounting package to save you money on taxes.
Fixed monthly price without surprises – If you need advice or help about tax or your accounts, we will not charge extra.
Our Birmingham sole trader accountants offer free tax and business advice. Call 0121 235 0315 for a chat about how we can help you pay less tax and grow your business:)
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If you want to discover how we can help your business, Quest Birmingham Accountants offers the following services: Tax Services, Self-Assessment, VAT, Payroll, New Business, R&D Tax Credits, Annual and Management Accounts, Tax Returns, Self-Employed Accounts, Business Planning, Business Tax, Accounts Services, Bookkeeping, Pensions, and UK Tax Deadlines.