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TAG Accountancy Service
Sole Trader Accounts
Services
Sole trader accounts pull a year's trading into one clear set of figures: what you turned over, what it cost you, and what profit you actually made. Unlike a limited company you don't file accounts at Companies House, so these exist for two reasons — to support the figures on your tax return, and to tell you whether the business is working.
About This Service
Sole Trader Accounts — what it is and who needs it
Sole trader accounts pull a year's trading into one clear set of figures: what you turned over, what it cost you, and what profit you actually made. Unlike a limited company you don't file accounts at Companies House, so these exist for two reasons — to support the figures on your tax return, and to tell you whether the business is working.
The second reason is the one most people miss. A sole trader's tax return only wants a total for income and a total for expenses, so it is entirely possible to trade for years without ever knowing which parts of the business make money. We break the numbers down so you can see gross margin, your real cost base, and how this year compares with last.
We also use the accounts as a planning document rather than a historical record. If profits are rising, that has consequences: payments on account, a possible VAT registration threshold breach, and eventually the question of whether incorporating would save you money. All three are much easier to handle if you see them coming.
Sole trader accounts also matter when someone else needs to assess you. Mortgage lenders typically want two or three years of figures prepared by an accountant, and they want them to be consistent with what was submitted to HMRC. Getting this right early avoids an awkward conversation with a lender later.
Who this is for
Anyone self-employed as a sole trader or in a partnership, from first-year freelancers to established trades with staff.
Key facts & deadlines
-
Self Assessment required
All sole traders must file a tax return — regardless of profit level.
-
Profit calculation
Turnover minus allowable expenses. Business mileage, home office, equipment all claimable.
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Class 4 NIC
9% on profits between £12,570 and £50,270 — 2% above.
-
MTD for Income Tax
Mandatory from April 2026 for sole traders with income over £50,000.
Get a Free Consultation
Free consultation — no obligation
What's Covered
Everything included in our
Sole Trader Accounts service
Our all-inclusive service means no surprises — everything you need is handled by your dedicated accountant.
- Annual profit and loss account
- Balance sheet where useful
- Capital allowances on equipment and vehicles
- Review of drawings and business use of assets
- Comparison against the previous year
- Figures fed straight into your Self Assessment
- A short written summary of what the numbers say
- Guidance on whether incorporation is worth considering
Is This Right For You?
Who our Sole Trader Accounts
service is designed for
Anyone self-employed as a sole trader or in a partnership, from first-year freelancers to established trades with staff.
Quick checklist
- Annual profit and loss account
- Balance sheet where useful
- Capital allowances on equipment and vehicles
- Review of drawings and business use of assets
- Comparison against the previous year
- Figures fed straight into your Self Assessment
- A short written summary of what the numbers say
- Guidance on whether incorporation is worth considering
Why TAG?
TAG Accountancy vs. going it alone
See exactly what you get when an expert handles your sole trader accounts.
Feature
DIY /
Other
Other
TAG
Accountancy
Accountancy
Qualified, dedicated accountant
Deadlines tracked and filed for you
Proactive tax-saving advice
Year-round support (not just at deadline)
Fixed transparent fee — no surprise invoices
Always up to date with HMRC rule changes
Free from hours of paperwork
Personal service from a local Norfolk team
Ready to switch?
Simple Process
How our Sole Trader Accounts service works
We keep it simple. No jargon, no chasing — just a reliable service that runs in the background.
1
We gather the year
Bank statements, invoices, receipts and any records you already keep. Cloud bookkeeping makes this almost instant.
2
We build the accounts
Income and costs categorised properly, capital allowances claimed, and anything unusual queried with you.
3
We talk you through them
Not just a PDF. We explain what changed, what it means for your tax, and what to watch next year.
Sole Trader Accounts FAQs
Common Sole Trader Accounts questions — answered
Can't find the answer you need? Ask us directly →
No. Unlike a limited company you do not file accounts at Companies House and there is no public record of your figures. Your only legal obligation is to report the right numbers on your Self Assessment return and keep records to support them for at least five years after the filing deadline.
That said, most sole traders benefit from proper accounts anyway — for mortgage applications, for planning, and because it is much harder to spot a problem in a list of bank transactions.
There is no single profit figure where it always makes sense, but the question becomes worth asking somewhere around the point where your profits comfortably exceed what you need to draw for living costs. Above that, retaining profit in a company and drawing a mix of salary and dividends can be more tax-efficient.
It is not purely a tax decision though. A company means Companies House filings, public accounts, director responsibilities and more administration. We will model both and give you an honest view, including when the answer is to stay as you are.
Enough to show how you arrived at the figures on your return: sales invoices, purchase receipts, bank statements, mileage logs, and records of any goods you took for personal use. Digital copies are fine and HMRC accepts photographs of receipts.
Keep them for five years after the 31 January filing deadline for that tax year. Under Making Tax Digital the records will need to be kept digitally, which is one reason we set clients up on software early.
Yes. There are two approaches. The simplified flat rate gives you a fixed monthly amount based on hours worked from home, which needs no receipts and suits most people. Alternatively you can apportion actual costs — rent or mortgage interest, council tax, utilities, insurance — by the number of rooms used and the time they are used for business.
The apportioned method usually gives a larger claim but requires records. We work out which is better for you rather than defaulting to the easy one.
Expert Insight
Sole Trader Accounts articles
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Sole Trader Accounts?
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Whether you want to switch accountant, need help with a specific return, or just want to know how much you could be saving — get in touch. The first call is always free.
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Norwich, NR9 3LU
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