What filing responsibilities do I have as a sole trader?

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Evening

I’d like to start doing freelance work as a sole trader. I’m a bit worried about the sort of tasks I’m going to need to do for the taxman. Are there certain filing requirements that I’ve got to do as a sole trader?

Thanks

Eric Matthews Falkirk

Answers

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Hi Eric,

At the end of every tax year, sole traders are required to complete and file a Self-Assessment tax return and pay Income Tax and National Insurance Contributions to HMRC.

If you are business is registered for VAT, you will also have to complete VAT returns every quarter and pay your VAT bill at the same time.

If you employ staff, you will be required to run payroll or pay someone else to do it for you. If you choose to do it yourself, you will have to provide HMRC with information about your employees and report their payments and deductions on or before each payday. Annual PAYE reports will also have to be filed with HMRC.

You can hire an accountant to take of these tasks for you. It may seem like an additional expense that you could do without, but it’s often more beneficial to use accountant because you can save yourself a great deal of time and money in the long run.

a year ago
 

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