Sole Traders and Self Employed

If you are a sole trader or are self-employed, you run your own business, hire your own team, provide the equipment that is needed in order for you to work, charge for your services or sell goods or services for your own profit.

As a sole trader or self-employed person, you are not a limited company, meaning that you are responsible for notifying HMRC of your earnings and paying all of the appropriate taxes.

In order for this to carried out correctly, you must keep records of the following:

• Your invoices
• Your expenses
• Your profit

What expenses can I claim back?

There are many costs which surround the running of your own business. However, if you have purchased certain items or services which align with the running of your business, you are able to offset these against your overall business turnover – meaning that you will have not have to pay taxes on this disclosed amount.

Examples of business expenses include:

• Travel costs (parking, public transport fares and fuel)
• Office equipment, including stationary, furniture and business phone bills
• Accountancy fees
• Protective or branded work clothing
• Advertising costs
• Business rates and utilities
• Staff and financial costs

As the thought of preparing all of this may panic you a little, at Total Tax Solutions we can help. We can keep on top of your accounts and tax returns, allowing you to focus your mind on other business assets.

To learn more or to talk with one of our finance experts, call us today on 01325 488788 or contact us via email at info@totaltaxsolutions.co.uk