Running your own business gives you freedom, but it also leaves you responsible for bookkeeping, tax, Self Assessment and keeping up with HMRC requirements. Yorkshire Accountancy provides straightforward accountancy services for sole traders, freelancers, contractors and other self-employed people across Yorkshire and throughout the UK.
Whether you are registering as self-employed for the first time, need help getting your records in order or want an accountant to manage everything for you, we can help with your bookkeeping, annual accounts, Self Assessment tax return, allowable expenses, VAT and Making Tax Digital requirements.
We will also help you understand how much tax you are likely to owe, when payments are due and what you should be putting aside, so there are fewer surprises when your tax bill arrives.
Being a sole trader is one of the simplest ways to run a business, but that does not mean the accounting is always simple. As your business grows, you may need to deal with more detailed bookkeeping, VAT, Making Tax Digital, employees, CIS deductions or increasingly complex tax planning.
We can help you:
You can use us for a particular service or ask us to look after the accounting side of your business throughout the year.
Most sole traders with taxable self-employed income need to report their business income and expenses to HMRC through Self Assessment.
We can prepare your return, calculate your taxable profit and explain how much Income Tax and National Insurance is due. We will also check that relevant business expenses and available tax reliefs have been considered before your return is submitted.
Just as importantly, we can explain the figures before the deadline rather than simply telling you what to pay at the last minute.
If you are newly self-employed, we can also help you understand registering with HMRC, your Unique Taxpayer Reference (UTR) and what information needs to be retained for your first return.
One of the biggest differences between employment and self-employment is that tax is not normally deducted from every payment you receive.
That means a growing bank balance does not necessarily represent money that is available to spend.
We can estimate your tax position during the year and help you plan how much to put aside. This is particularly useful where payments on account apply, as you may have tax payments due in both January and July.
Regular bookkeeping makes those estimates far more useful because they can be based on how your business is actually performing rather than an old set of figures.
Making Tax Digital for Income Tax is now an important part of accounting for many self-employed people.
For the 2026/27 tax year, qualifying sole traders and landlords with more than £50,000 of qualifying income are within MTD for Income Tax. The threshold falls to more than £30,000 from April 2027 and more than £20,000 from April 2028.
Qualifying income is based on gross income from self-employment and property before expenses, so it is important not to confuse the MTD threshold with taxable profit.
If MTD applies to you, you will normally need compatible software to maintain digital records, provide quarterly updates to HMRC and complete the end-of-year tax process. Explore more in our article Free MTD Software for Sole Traders
Yorkshire Accountancy can help determine when MTD applies to you, set up suitable accounting software and keep your records organised so that quarterly reporting becomes part of your normal bookkeeping rather than another last-minute administrative job.
Good bookkeeping is the foundation of reliable accounts and tax returns.
We can take care of your bookkeeping for you or help you establish a practical system that allows you to keep your own records. Depending on your business, this could include recording sales, categorising expenses, reconciling your bank transactions, keeping invoices and receipts and monitoring money owed to or by the business.
For many sole traders, cash basis accounting is now the standard method of recording income and expenses, although traditional accounting can still be appropriate in some circumstances. We can advise on the method that fits your business and reporting requirements.
Cloud accounting can also make record keeping considerably easier. Yorkshire Accountancy works with established accounting and bookkeeping systems and can help you choose software that fits your business.
Claiming legitimate business expenses reduces the profit on which you are taxed, so getting them right is an important part of sole trader accounting.
Depending on the nature of your business, allowable costs could include areas such as business travel, mileage, equipment, professional fees, software, insurance, telephone costs, certain home-working expenses and other costs incurred for the business.
The rules differ depending on the expense and whether there is any private use, so we can review your records and make sure appropriate costs are treated correctly rather than relying on guesswork.
Yorkshire Accountancy also has a detailed guide covering common costs that self-employed people may be able to claim.
Being a sole trader does not prevent you from registering for VAT.
VAT registration normally becomes compulsory when taxable turnover passes the current registration threshold, although some businesses choose to register voluntarily before reaching it.
Our VAT accountants can monitor your turnover, advise when registration is required or commercially appropriate, complete the registration and prepare your ongoing VAT returns.
We can also discuss the VAT accounting schemes that may be relevant to your business and ensure your bookkeeping records contain the information needed for Making Tax Digital for VAT.
A sole trader does not have to work alone. You can employ members of staff while continuing to trade as a sole trader.
Taking on your first employee introduces responsibilities around PAYE, payroll reporting, workplace pensions and employment records. Our payroll services team can take care of the regular calculations and HMRC submissions while you concentrate on managing your business.
If you operate in construction, you may also need to consider the Construction Industry Scheme.
Our CIS accountants work with tradespeople and CIS contractors across Yorkshire and the UK and can help with bookkeeping, Self Assessment, CIS deduction records, tax calculations and the accounting issues that commonly affect people working within the sector.
Remaining a sole trader is not always the right choice forever.
As profits increase, the business takes on greater risk or your plans become more ambitious, it can be worth reviewing whether a limited company structure would be more appropriate.
There is no single turnover or profit figure at which everybody should incorporate. Tax is only part of the decision. Administration, legal responsibility, how you take money from the business, future investment and your longer-term plans all matter.
We can compare the options using your actual figures and explain the practical and tax consequences before you make a change.
Our role does not have to stop once your tax return has been filed.
Accurate financial information can help you understand which parts of your business are performing well, whether costs are increasing, how much cash is available and whether you can afford your next investment.
As your sole trader business develops, we can provide additional bookkeeping, VAT, payroll, management information and tax planning support without you having to find a new accountant every time your circumstances change.
And if incorporation eventually becomes appropriate, we can help you manage the transition from sole trader to limited company.
Our sole trader clients range from people starting their first small business to established self-employed businesses with staff and significant turnover.
We support freelancers and consultants, builders and other trades, CIS contractors, driving instructors, hairdressers, market traders, online sellers and e-commerce businesses, as well as many other self-employed professions.
Where your industry has specific accounting considerations, you can also speak to an accountant familiar with the way your business operates.
You do not need to wait until the end of the tax year to change accountant.
If you are unhappy with your existing service, struggling to get answers or simply want more proactive support, we can explain the switching process and contact your previous accountant for the professional information we need.
We can also help if bookkeeping has fallen behind or previous records need reviewing before your next Self Assessment or MTD submission.
Yorkshire Accountancy combines the personal support of a local accountancy firm with cloud-based systems that allow us to work with self-employed clients throughout the UK.
You will have access to accountants who can explain your figures and tax position in straightforward language rather than simply completing forms at the end of the year.
Our aim is to keep your accounting organised, make sure important deadlines are dealt with and give you useful information about your finances throughout the year.
Whether you need help with one tax return or ongoing sole trader accounting, we can tailor the level of support to the way you prefer to run your business.
Yorkshire Accountancy is based in East Yorkshire and supports sole traders in Hull, Beverley and the surrounding area, as well as clients throughout Leeds, York, Sheffield and the wider Yorkshire region.
We also work remotely with sole traders elsewhere in the UK using cloud accounting and secure digital systems.
Please call or email to arrange your FREE consultation for any of our services.
We’re a modern, friendly and proactive accountancy service.
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There is no general legal requirement for a sole trader to appoint an accountant. You can manage your own records and tax return if you are comfortable doing so. Many businesses use an accountant to reduce the administrative burden, understand their tax position, identify legitimate expenses and make sure increasingly complex requirements such as VAT or Making Tax Digital are handled correctly.
The exact service depends on what you need. It can include bookkeeping, preparing business accounts, completing your Self Assessment tax return, calculating Income Tax and National Insurance, reviewing expenses, VAT returns, tax planning, payroll, MTD submissions and dealing with HMRC correspondence.
If your sole trader income exceeds the relevant HMRC trading allowance or another registration condition applies, you may need to register for Self Assessment. If you are starting a business and are unsure whether registration is required, we can explain what needs to be done and the relevant deadlines.
You should keep sufficient records to support the income and expenses reported to HMRC. These commonly include invoices, receipts, bank records, details of business expenses and other evidence used to prepare your accounts and tax return. Additional requirements can apply if you are VAT registered, employ staff or fall within Making Tax Digital for Income Tax.
Yes. Expenses incurred for legitimate business purposes can normally be taken into account when calculating taxable profit, subject to HMRC’s rules. Some costs have specific restrictions or need to be divided between business and private use.
Not automatically. VAT registration generally becomes compulsory once taxable turnover exceeds HMRC’s VAT registration threshold, although voluntary registration is possible below that level.
Yes, where the qualifying conditions are met. MTD for Income Tax is being introduced according to qualifying income and requires affected sole traders to maintain digital records and use compatible software for HMRC reporting.
Yes. A sole trader can employ staff. Doing so normally brings additional obligations including PAYE payroll reporting and potentially workplace pension duties.
There is no universal point at which a sole trader should become a limited company. Profit level, tax, commercial risk, administrative requirements and your plans for the business should all be considered. We can compare the two structures using your circumstances before you decide.
Our goal is to remove as much time and stress from the accounting side of your business so that you can focus on what matters more to you.
