You’ve finally taken the leap into a better future and decided to start your own business, but what happens next? The first thing you need to do is decide what kind of structure you need, will you be a sole trader, partnership, or limited company?
For many small and startup businesses in their infancy, the sole trader route is an ideal choice. It gives you the freedom to run your own business without being overcome by red tape and legislation. For new entrepreneurs, however, it can still seem a little overwhelming, particularly when it comes to getting the initial finances in order, and doing the accounts. This is where Mercian Accountants can help.
Using a professional accountancy firm such as Mercian Accountants will enable you to call on our wealth of experience, and gain invaluable assistance when it comes to:
- Registering your business with HMRC
- Creating a business plan
- Obtaining Investment
- Creating and submitting your Self Assessment Tax Return
These are just some of the areas that our expert team can help you with, and we’re dedicated to saving you time and money, ensuring that your business gets off to a great start.
Is Sole Trader Status Right For You?
More and more people are starting their own business, and finding that it brings the freedoms they’ve always wanted. As a startup entrepreneur you’ll be able to work the hours you want, making it much easier to fit your work around the demands of your family. You’ll also discover that the amount of money you make from your job correlates directly to the hard work you put in, rather than having to rely on an employer recognising and rewarding your contribution.
With the United Kingdom economy showing signs of real and sustainable growth again, there’s never been a better time to start a business, but is becoming a sole trader right for you?
A sole trader is a structure that can suit a person who runs a business on their own, although they may still sub-contract work to a third party. It’s a business model that can suit people working in many different sectors of UK industry, from taxi drivers to plumbers, and from IT consultants to internet traders.
Many start up sole traders also hold down a regular job working for somebody else, but whether you do this or not, you still need to register your business with HMRC, keep financial records and accounts, and complete an annual Self Assessment Tax Return.
Mercian Accountants can make this easy for you, allowing you more time to concentrate on the things that really matter to you, like making your business the best it can possibly be.
Helping You Meet Your Responsibilities
Being a sole trader is in some ways easier than forming a partnership or a limited company, but there are still legal obligations that must be followed. The first of these is registering your business with HMRC, and Mercian Accountants can take care of this for you. We make the whole process straightforward and you can concentrate on trading and making money.
If you find the HMRC guidelines for sole traders a little unclear, we’ll be happy to discuss them with you. As a sole trader, it’s a legal requirement for you to keep track of all your sales and business expenditures, as well as completing a Self Assessment Tax Return every year.
We can assist or carry out these essential functions for you, ensuring they are accurate and meet the latest regulatory requirements. Bookkeeping has advanced to the extent that it’s no longer about keeping scraps of paper and writing transactions out in triplicate in large books. Mercian Accountants use the latest accounting technology to make bookkeeping for sole traders quick and easy. With all your information in one secure location you won’t have to worry about looking for receipts and invoices as the tax return deadline looms.
Planning For Growth
Sole traders like you are passionate about their business, you have a great product or service and you want the public to benefit from it. When starting a business, entrepreneurs dream of growing their company into a successful concern, but what is the best way to achieve that? The secret to business success for a sole trader or any other type of business is planning, and yet for many start up entrepreneurs this can be the hardest task of all.
If you’ve never managed a business before, it can be hard to know what to expect in your first years, and therefore difficult to make realistic projections. Mercian Accountants can call upon their knowledge and experience to help you create a business plan that is realistic and sensible.
A well thought out business plan is a vital tool when it comes to getting finance from banks or other sources, and it is this external finance that could set you on the fast track to success. We can polish your business plan so that you will be taken seriously. We’ll also help you review progress against plan on an ongoing basis, highlighting areas for potential improvement and ensuring that your business keeps on track to reach and exceed its goals.
Self Assessment The Easy Way
If you’ve never completed a self-assessment tax return before, just the thought of it can be enough to cause panic. Inaccurate or late returns can lead to substantial fines and penalties, so it makes sense to have your accounts in perfect order throughout the year.
When you choose Mercian Accountants you’ll have a dedicated contact who will always be on hand to answer your questions. Your accountant can prepare your tax return for you, and submit it in a timely fashion. We’ll also be able to advise what you can claim for as allowable expenses against your tax liability, an area that many sole traders find confusing. In this way we’ll not only ensure that your tax return is accurate and truthful, we’ll also make sure that you don’t pay more than you really should be doing.
As your income as a sole trader grows you may want or have to register for VAT. Once again, we can help with your registration and your VAT returns, giving you one less thing to worry about.