Welcome to Daniel Wolfson, sole trader accounting experts
At Daniel Wolfson, we’re helping sole trader businesses like yours confidently and compliantly manage their tax and accounting obligations. We aim to satisfy your accounting needs by providing a holistic service that sets out to minimise tax liability, lend expert advice, and protect and nurture.
With sole trader accounting services designed around your needs, our experienced team provides support in all areas, catering to a wide range of business types, sizes, and structures. As your personal sole trader accountant, we’ll assist with your accounts, tax, and expense management, prepare and file statutory returns, offer business advice and tax planning advice, provide payroll services, and much more.
Looking for a holistic approach to sole trader accounting? Contact Daniel Wolfson today and discover how our sole trader accountants can give you back more of your valuable time.
When do you register your sole trader business?
In the UK, you must register with HM Revenue & Customs (HMRC) as soon as you start trading and no later than 5 October in the second year of trading.
Registering with HMRC as a sole trader means you must also register for Self-Assessment, for which you’ll need to provide your name, address, date of birth, phone number, NI number, business name, business type, and start date.
Anyone earning over £1,000 in undeclared income while regularly making a profit through selling goods or services or those wishing to make voluntary Class 2 National Insurance Contributions should also register for Self-Assessment.
Once registered, we’ll help you choose the most suitable accounting method for your sole trader business (as of 2024/25, the cash basis accounting method is the HMRC default). We’ll then prepare a Self-Assessment tax return for the previous year and help you pay anything you own by 31 January in the following tax year.
Daniel Wolfson’s sole trader accounting services go beyond supporting you in filing tax returns. We also implement tailored strategies for maximising your PAYE and self-employed income and find relevant tax benefits that enhance your overall profitability.
Who can prepare sole trader accounts?
No business entity is legally obliged to hire an accountant to run their bookkeeping, prepare accounts, or file returns. But an accountant’s knowledge of the latest laws and legislation and professional integrity underpin their decisions about minimising taxes and ensuring you’re claiming all the tax relief and allowances you’re entitled to.
What taxes does a sole trader pay?
As a sole trader, you’ll pay Income Tax and National Insurance Contributions (NICs) based on your profits. You must also keep a clear record of any funds withdrawn from the business to pay yourself or buy supplies to run your business. Clear, up-to-date records are essential for maintaining accurate company accounts.
Like every other taxpayer, self-employed individuals get their personal allowance (currently £12,570) and pay a tapered tax rate between 20% and 45%, depending on their profits.
Some sole traders may also need to calculate and file a VAT return if they are VAT-registered. As your sole trader accountant, Daniel Wolfson provides guidance on how and when to register for VAT and which VAT scheme is right for your business. We’ll also calculate and file your VAT return on your behalf.
What expenses can I claim as a sole trader?
Running your own business comes with several advantages, and claiming expenses is one of them. As HMRC are strict on this, and the rules can be quite complicated, knowing what you can claim is essential.
Some of the most common allowable expenses include:
- Work-from-home costs
- Mobile phone, landline, and broadband costs
- Sole trader accountant fees (and other professional fees)
- Travel expenses
- Vehicle mileage or purchase (but specific eligibility rules apply)
Don’t let a lack of knowledge stop you from making tax savings. We’ll make sure you know which expenses are deemed allowable and help you claim them.
Our accounting services for sole traders
At Daniel Wolfson, we’re all about helping you save money and make the most of every allowance and relief available to you. But above all, we ensure your accounts are always compliant, giving you total peace of mind.
Our sole trader accounting packages are designed to be affordable, flexible, and packed with value. You’ll get same-day responses, direct access to your own dedicated accountant, and expert advice whenever you need it, whether that’s over email, on the phone, via a video call, or in person.
Here’s how we’re making running your sole trader business easier:
- Bookkeeping and quarterly reviews;
- Preparation and submission of tax returns;
- Reminders of all deadlines and payment dates;
- Preparation and submission of quarterly VAT returns;
- Expert business advice;
- Limited company registration and ongoing support;
- Free MTD-compliant accounting software;
- Real-time view of your business’s financial health;
- Mobile app;
- Invoicing function with payment reminders;
- Online payment gateway integration;
- Bank reconciliation.
Our accountancy services include free customised MTD-compatible accounting software and a mobile app that provides real-time access to your business finances, digital record keeping, accounts, and filing, meaning you’ll already have met the 2026/27 sole trader deadline for HMRC Making Tax Digital (MTD).
Our friendly team provides the personalised service for which Daniel Wolfson is well known, saving sole traders time and ensuring they avoid fines resulting from errors and penalties for late filing.
Grow your sole trader business with Daniel Wolfson
Daniel Wolfson offers flexible, affordable accounting solutions that include all the services small businesses need, whenever they need them. You’ll benefit from a friendly team of dedicated, qualified accountants, as well as your own personal accountant, who will be on hand to provide comprehensive support and business advice.
We have helped many sole trader businesses transition to a limited company and saved them time and money. Our accountants’ expertise has your business covered! Reach out to us today by calling 01923 856 008 or booking a free consultation to find out more.
Frequently asked questions about sole trader accounting
How do you set up as a sole trader?
Here’s how to register as a sole trader in three easy steps:
1) Inform HMRC that you are self-employed.
2) Register for Self-Assessment as a sole trader.
3) Choose a business name.
You can start trading immediately, as sole traders don’t need to register with Companies House.
What documents does a sole trader need?
Like any business, sole traders are legally required to accurately record all business income and expenses, including invoices, receipts, bank statements, and any other financial documents. From 2026/27, it will be mandatory for sole traders to update and store their records digitally and report their income online every quarter.
Opening a business bank is advisable since it separates personal and business finances, simplifying record-keeping.
What is the difference between a sole trader and a limited company?
Sole traders’ profits are liable to Income Tax and National Insurance, which is paid when filing a Self-Assessment tax return. There is no legal distinction between a sole trader and their business, so they are liable for any business debts.
Limited companies legally separate the business from its owner, including the business’s finances. They must register with Companies House and HMRC and pay Corporation Tax on profits. While there are more tax planning opportunities, this often comes with more administration.
