Accountants for
Startups

Yes, and it is a fairly common starting point. We agree a fixed fee for bringing the records up to date, work back through the bank statements, and rebuild the ledger to a point where it is accurate.

Bring whatever you have, including the carrier bag. It is genuinely easier for us to sort out than for you to attempt first.

An online return for the tax year ending 5 April must be filed by 31 January the following year, and any tax owed is due the same day. Paper returns are due earlier, by 31 October. If you also make payments on account, the second one falls due on 31 July.

We aim to have returns finished well before Christmas so you know your January figure in good time.

You generally need to file if you were self-employed with turnover over £1,000, received rental income, are a company director taking dividends, made a capital gain above the annual exempt amount, or earned over £50,000 while you or your partner claimed Child Benefit.

If you have had a notice to file from HMRC you must submit a return even if you owe nothing, until HMRC withdraws the notice. If you are not sure, ask us — it takes five minutes to check.

There is an automatic £100 penalty the day after the deadline, even if you owe no tax. After three months it becomes £10 a day up to £900, and further penalties apply at six and twelve months. Interest runs on unpaid tax from the due date.

If you are already late, file as soon as possible — the penalties stack up rather than replacing each other.

Anything incurred wholly and exclusively for the business. For most sole traders that covers stock and materials, tools and equipment, business insurance, accountancy fees, business travel and mileage, phone and internet on the business proportion, and a reasonable amount for working from home.

What you cannot claim is ordinary commuting, client entertaining, or the personal share of anything you use for both business and private purposes. We go through this with you rather than guessing.

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.