Address :- 152-178 Kingston Rd, New Malden KT3 3ST, UK

Timing :- Mon - Fri : 09:00 - 17:00

Phone :- 020 8191 9583

Email :- info@zahtaxaccountants.com

Timing :- Mon - Fri : 09:00 - 17:00

Phone :- 020 8191 9583

Email :- info@zahtaxaccountants.com

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Sole Traders

Our complete tax solution for Sole Trader businesses

ZahTax are an expert team of Chartered certified accountants providing high quality accounting and tax services to sole traders businesses and self-employed individuals. We are specialist sole trader tax return accountants in London and Surrey providing services for a fixed fee that ensures that the tax liability of sole traders is kept to a minimum.

What is a Sole Trader?

A sole trader, as the name suggests, is the person who solely runs the business and owns the business. This is the most simplest form of business structure and is a first step towards starting your own business.

Sole traders also called self-employed which means they work for themselves and therefore, legally, the individual and the business are the same.

 
Benefits of being a Sole Trader?
 

The main advantage of working as a sole trader is that it is the most simplest business structure to operate, with least compliance requirements. Other benefits include:

  • You are the owner and keep of all the benefits of running a successful business
  • Start-up costs are very low
  • Easier to close down
  • Full control over all the day to day management of the business
  • Greater privacy as all data is kept private
 
What taxes do I have to pay as a Sole Trader?
 As a sole trader in the UK, you will be required to pay income tax, Class 2 National Insurance and Class 4 National Insurance if your taxable profits are above a certain level.

 

Tax and NI Rates for sole traders
 
Income Tax Rates 2023/24
BandTaxable profitsTax Rate
Personal allowanceUp to £12,5700%
Basic rate£12,571 to £37,70020%
High rate£37,701 to £125,14040%
Additional rateOver £125,14045%
Class 2 Nation Insurance Rates 2023/24
BandTaxable profitsNI payable 
Small Profits Threshold (SPT)    Below £6,725 per year                     0 
Above SPTAbove £6,725£3.45 per week
Class 4 Nation Insurance Rates 2023/24
BandTaxable profits                  NI Rate
Lower Profits Limit (LPL)                          Below £12,570 per year                               0%    
LPL to Upper Profits Limit (UPL)£12,571 to £50,2709%
Above UPLAbove £50,2702%
Relevant due dates for Sole Traders

The relevant deadlines for sole traders in relation to filings and for payments are as below:

  • Register for self-assessment by 5 October following the end of the tax year in which the sole trader business has been started
  • Submit a paper return by 31 October following the end of the tax year
  • Submit an online return by 31 January following the end of the tax year
  • Pay any tax due by 31 January following the end of the tax year
 
How Zantax Can Help

As expert sole trader accountants, we can help you with the following:

  • Registration of your sole trader business
  • Set up of online accounting software
  • Advice in relation to which expenses can be claimed for business purposes
  • On-going help and advice in relation to accounting and tax matters
  • Advise on claiming all the legitimate expenses to optimize tax savings
  • Preparation of annual sole trader accounts
  • Preparation of your sole trader self assessment tax return
  • Calculation of sole trader tax liability
  • Submission of sole trader tax return with HMRC


For more information and to arrange a free consultation, please contact us on 020 8191 9583 or email us at info@zahtaxaccountants.com.

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Zahtax Accountants Ltd is an independent firm of accountants who are specialized in personal taxation.

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A member firm of Association of Charted Certified Accountants

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