Sole traders don’t need to register with Companies House, so no information about your business will appear in their records or on their website.

You can claim expenses for your businesses accountancy fees, providing the accountant's time is being spent working on your sole trader accounts and not on personal items, such as the production of your annual Self Assessment.

It’s not a legal requirement, but having a separate business account makes tracking expenses and completing your Self Assessment much easier. With Crunch, you can also link your business bank account via Open Banking for daily automatic imports. If you’re looking for a business bank account, our bank partner Zempler is a great choice. You can apply in minutes and even get £50 when you join through Crunch (as long as you deposit £250 in the first 30 days).

It’s unlikely your Sole Trader business will need an audit unless your turnover reaches millions of pounds. If that happens, an accountant will need to guide you through any audit requirements.

There’s no legal requirement for Sole Traders to have an accountant, but having one can make managing your business finances much easier. Accountants can help with statutory filings, tax returns, and financial management, especially when it comes to VAT, CIS, or employing others. With Making Tax Digital (MTD) now in effect, having an accountant can also help ensure your business stays compliant with HMRC’s ever-changing digital tax filing requirements. Crunch’s Sole Trader accounting software is backed by a team of Chartered Certified accountants who can handle all your tax needs, including MTD, so you can focus on running your business.

As a Sole Trader, you’ll pay Income Tax and National Insurance Contributions based on your business profits. You take personal drawings from the business, and it's important to keep a record of them for tax purposes. Accounting software for Sole Traders like Crunch can help you track your drawings, making sure you’re ready when it’s time to file your Self Assessment.

Sole trader taxes need to be filed with HMRC before their relevant due dates. You’ll need to start by registering as a sole trader with HMRC, and registering for tax returns such as Self Assessment. As a Crunch client, our team of Chartered Certified accountants can file your tax returns on your behalf. If you don’t have an accountant, though, you’ll need to file your returns yourself.

Many major banks don’t give you the option to open an account for your small business online, but usually, you’ll be able to start your application on the bank’s website, prior to meeting a representative in person or over the phone.Some banks will allow you to walk into the branch and make a same-day appointment, but of course, this cannot always be guaranteed.Crunch is also partnered with a number of trusted banks, including Tide, Metro, Barclays, and Revolut. You can even enjoy special offers and discounts when you open a business account through one of these providers as a Crunch client!

At Crunch, our paid accountancy package for sole traders is available for just £26.50+VAT a month! As a Crunch client, you’ll get access to a team of Chartered Certified accountants and expert client managers, available whenever you need them to help your business thrive.

Yes, you will receive a Self Assessment for the trading year 2024-2025.

Tax returns sole traders are required to file include VAT (if your business is VAT registered), and your annual Self Assessment, which covers your personal Income Tax and National Insurance liabilities. You can read more about your tax obligations in our “What is a sole trader?” article.

Self Assessment - often referred to as a ‘tax return’ - is a way for HMRC to calculate how much Income Tax and National Insurance Contributions you’ll need to pay. For contracted employees, your tax is deducted monthly on your employment income through the PAYE system. For the self-employed, or someone with other types of income (e.g. pension or dividends), HMRC needs a Self Assessment to assess the tax required to be paid.

If you’re self-employed and running your own business as an individual, then you should be registered with HMRC as a sole trader. Being a sole trader means there’s no legal distinction between the individual and the business they own.Sole traders work in many industries and trades, including electricians, plumbers, management consultants, designers, and more. Check out our article on “What is a sole trader?” for more information.

Your annual Self Assessment must be filed with HMRC before 31st January each year.

You can prepare your own sole trader accounts if you’d like, but the best strategy is to get an accountant to do it for you. Accountants can make sure your returns are filed accurately and well ahead of a deadline - all you need to do is sign them off! An accountant will also make sure you are claiming the correct business expenses.