Accounting for Self Employed Businesses

Self Employment Accountants

You’ve taken a big step towards independence by going freelance or starting your own business, but that doesn’t mean you’re alone. You’ll get all the support you need, from business planning and strategic advice, to done-for-you tax returns and accounts. Our team of qualified accountants helps self-employed individuals manage their finances and save on taxes. We do the numbers for you, so you can focus on what you do best.

We provide comprehensive guidance on all aspects of self-employment, including the different types of business structures, tax obligations, and national insurance contributions. Maintaining tax compliance and accurate records is crucial for both regulatory purposes and providing a clear financial picture for your business.

Additionally, we offer insights into the different accounting methods available to self-employed individuals, such as cash basis, accrual basis, and hybrid accounting, and how they can impact financial reporting. Managing your own business finances and ensuring you comply with tax regulations can be challenging, but with our support, you’ll have the confidence to succeed.

Introduction to Self Employment

Self-employment is a popular choice for many individuals, offering the freedom to be their own boss and pursue their passions. As a self-employed person, it’s essential to understand the basics of self-employment, including the different types of business structures, tax obligations, and national insurance contributions.

Whether you’re a sole trader, running a limited company, or part of a partnership, each structure has its own set of rules and benefits.

Being self-employed means you have the flexibility to shape your own business and make decisions that align with your goals. However, it also comes with responsibilities, such as managing your own business finances and ensuring you comply with tax regulations.

Our team is here to guide you through the process of setting up your own business, helping you navigate the complexities of self-employment, and ensuring you take full advantage of available tax reliefs and allowances.

Business Structure

Choosing the right business structure is crucial for self-employed individuals, as it can significantly impact your tax liability, national insurance contributions, and overall business finances. The most common business structures for self-employed individuals are sole traders, limited companies, and partnerships.

As a sole trader, you’ll be personally responsible for the business’s debts and liabilities, which means your personal assets could be at risk. On the other hand, a limited company provides limited liability protection, separating your personal finances from your business finances. Partnerships involve two or more individuals sharing ownership and responsibility for the business, which can be beneficial for pooling resources and expertise.

Our experienced accountants can help you determine the best business structure for your needs, ensuring you meet all necessary accounting obligations and optimise your tax position. Whether you’re just starting out or looking to restructure your existing business, we’re here to provide expert advice and support.

Online Accounting for  the Self Employed

Our teams are trained on all the main cloud accounting software applications, and can help you choose the right one for your business. Cash basis accounting is one of the primary methods available to self-employed individuals, recording transactions at the time of cash flow, which can simplify financial management.

We’re experienced in accounting for self employed businesses, as well as contractors and freelancers, so you’re in good hands with us. Chasing late payments is crucial to maintain healthy cash flow, and we can assist you in timely follow-ups on outstanding payments.

Self Employed Tax Advice and Self Assessment Tax Returns

Looking for an accountant to help with your self employed tax return? You’re in luck. Our team of expert tax advisors keep up to date with the latest tax guidance for self employed professionals and contractors, meaning they’re always ready to help you save money on your tax bill. Understanding allowable expenses can help you save tax.

With the introduction of Making Tax Digital and the wide range of online accounting software available, it can be confusing and daunting, especially if you’ve never submitted a tax return before. We’ll help you to choose and set up the right software for you, and offer ongoing training to help you make the most of it, saving you time in the long run. Additionally, we assist in the process of obtaining a tax refund if applicable.

As Chartered accountants and tax advisors, we support a wide range of contractors, freelancers and self employed professionals. Income tax self assessment is crucial, and we can assist with this process. Contact us today to discuss how we could help you.

Tax Obligations

As a self-employed individual, you’ll need to complete a self-assessment tax return, which involves reporting your income, expenses, and any tax relief claims. The tax year runs from April 6th to April 5th, and you must submit your tax return by January 31st to avoid penalties.

Our dedicated accountants can help you navigate the tax system, ensuring you meet all necessary tax obligations and claim available tax reliefs, such as business expenses and pension contributions. We’ll guide you through the process of registering for self-assessment, obtaining a government gateway account, and understanding the tax implications of your business structure.

National Insurance and Pensions

As a self-employed individual, you’re responsible for paying national insurance contributions, which fund your state pension and other benefits.

Our accountants can help you understand the national insurance contribution system, ensuring you pay the correct amount and claim tax relief on your pension contributions. We’ll provide advice on how to save money on national insurance contributions and maximise your pension benefits.

Whether you’re a high earner or just starting out, our experienced accountants will offer personalised advice and support to help you navigate the world of self-employment and secure your financial future.

Contact us today.