Accounting Services for Sole Traders
Expert accounting, tax and business support for sole traders across Manchester and beyond. Choose AMH to stay compliant, save time, and grow your business.
Self-Assessment Tax Returns
Our experienced accountants prepare and submit Self Assessment tax returns on your behalf. We'll ensure everything is accurate, compliant and submitted on time. We'll also identify any legitimate allowances and expenses available to help maximise your tax efficiency.
How does AMH Support Sole Traders?
At AMH accounts, we help sole traders, freelancers, contractors and self-employed professionals manage their finances with confidence. Our tailored accounting services combine expert advice, modern technology and dedicated support to help you spend less time on paperwork and more time on your business’s success.
VAT Registration & Returns
AMH accounts provides expert support with VAT registration, VAT returns and Making Tax Digital compliance. We help sole traders stay compliant, while reclaiming any VAT you're entitled to.
Company Formation & Incorporation
As your business grows, there may come a point where operating as a limited company becomes beneficial. If incorporation is right for you, we'll handle the entire company formation process, ensuring a smooth transition.
Making Tax Digital Software
As part of our service, we'll provide access to MTD-Compliant accounting software. This will help you maintain digital records, track income and expenses, and stay compliant with HMRC's ever-evolving requirements.
Your Own Dedicated Accountant
You'll have direct access to a dedicated accountant who understands you, your business, your goals and your challenges. Whenever you need support, advice or reassurance, Allen Mills Howard are only a phone call away.
What is a Sole Trader?
A sole trader is an individual who owns and operates their own business. As a sole trader, you retain complete control of your business and keep all profits after tax. However, you are also personally responsible for any debts, liabilities or legal obligations incurred by the business.
Many freelancers, consultants, tradespeople and self-employed professionals choose the sole trader route because it offers simplicity and flexibility.
Unsure which is the right path for you? Get in touch.
Frequently Asked Accounting Questions for Sole Traders
What is a sole trader?
A sole trader is a self-employed individual who owns and operates their business. It is the simplest business structure in the UK, with fewer administrative and reporting requirements than a limited company. As a sole trader, you keep all profits after tax but remain personally responsible for any business debts or liabilities.
Do I need an accountant as a sole trader?
No, there is no legal requirement to use a sole trader accountant. However, professional accounting support can save time, reduce stress, ensure your Self Assessment tax returns are accurate and help identify opportunities to improve tax efficiency.
What records do I need as a Sole Trader?
Sole traders should keep accurate records of all income, expenses, invoices, receipts and business transactions. HMRC generally requires records to be retained for at least five years after the relevant Self Assessment submission deadline.
How much tax does a sole trader pay?
Sole traders typically pay Income Tax and National Insurance Contributions on their business profits. The amount payable depends on your total income and personal circumstances. Professional tax planning can help ensure you’re paying the correct amount while claiming all available allowances and expenses.
Can I claim expenses as a sole trader?
Yes. Sole traders can usually claim allowable business expenses that are incurred wholly and exclusively for business purposes. Common examples include office costs, travel, equipment, software subscriptions, professional fees and marketing expenses.
Can a sole trader employ staff?
Yes, sole traders can employ staff. Before doing so, you must register as an employer with HMRC. Be aware though, you will have unlimited liability for any claims made against or by the employee.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is HMRC’s initiative to modernise the UK tax system. Eligible sole traders and landlords must maintain digital accounting records and submit regular updates using compatible software. Allen Mills Howard can help ensure you remain fully compliant.
What liability does a sole trader have?
Unlike a limited company, a sole trader does not benefit from limited liability. Legally, the individual and the business are considered the same entity, meaning you are personally responsible for any debts, financial obligations or legal claims arising from the business.
Should I remain a sole trader or go limited?
The right structure depends on your circumstances, income and future plans. While sole traders benefit from simplicity and flexibility, limited companies can offer additional tax planning opportunities and limited liability protection. Our accountants can help you determine the most suitable option for your business.
When should sole traders register for VAT?
VAT registration is usually required when your taxable turnover exceeds the current HMRC threshold. Some businesses choose to register voluntarily before reaching the threshold. We can advise whether VAT registration is appropriate for your business and manage the entire process on your behalf.
Sole Trader vs Limited Company
Choosing the right business structure is crucial.
Operating as a sole trader offers simplicity, less admin requirements and complete control. As your business grows, though, forming a limited company may provide additional opportunities for tax planning, credibility and future expansion. Limited companies are separate legal entities, meaning liability is generally limited to the company itself rather than your personal assets.
Our experienced accountants can help you determine which structure is most appropriate for your circumstances. Both now and in the future.
Key Dates for Sole Traders
Deadline to submit online tax returns, pay any outstanding tax liabilities, and make first payment on account.
May
If you employ staff, you must issue P60s by this date each year.
April
New tax year begins. Updated allowances may apply.
July
Second instalment of any payments on account due to HMRC.
Provide your first quarterly update on your income tax through MTD compliant software. Deadlines depend on your circumstances.
Deadline to inform HMRC that you need to complete a Self Assessment tax return.
Last date for submitting a paper Self Assessment tax return.
Deadline to request collection of eligible tax liabilities through your PAYE tax code.
AMH: Sole Trader Accountants Manchester
Whether you’re a newly self-employed sole trader or an established business owner, Allen Mills Howard provides the expert accounting support, tax advice and personal service you need to succeed.
Speak to our team today and discover why sole traders across Manchester trust AMH accounts to keep their finances organised, compliant and ready for growth.
