Limited liability for Sole Traders ?
Corporation Tax is a key source of government revenue. Companies have a responsibility to contribute their fair share.
Running Your Own Business?
As a sole trader, you wear many hats—but accounting shouldn't be your biggest headache. MHC & CO specialises in sole trader accounting, helping you stay compliant, maximise tax efficiency, and focus on growing your business.
What is a Sole Trader?
A sole trader is the simplest business structure—you're self-employed and personally responsible for your business:
Simple Setup
No need to register with Companies House. Just notify HMRC for Self-Assessment.
Personal Liability
You're personally responsible for business debts and liabilities.
Tax Simplicity
Business profits are taxed as personal income through Self-Assessment.
💡 Perfect for: Freelancers, consultants, tradespeople, online sellers, creatives, and service providers earning up to £100k annually.
Sole Trader vs Limited Company
Understanding which structure is right for you:
| Feature | Sole Trader | Limited Company |
|---|---|---|
| Setup & Costs | Free & simple | Registration fees & more complex |
| Personal Liability | Unlimited personal liability | Limited liability protection |
| Tax Rates | Income tax rates (20%-45%) | Corporation tax (19%-25%) + dividend tax |
| Accounting Requirements | Simpler bookkeeping | Full statutory accounts required |
| Privacy | Financial details private | Accounts publicly available |
| Best For | Lower-risk businesses, startups, freelancers | Growth businesses, higher risk, investment |
We can advise when it's time to consider incorporating as a limited company.
Benefits of Professional Sole Trader Accounting
Time Savings
Free up 10-15 hours monthly that you'd spend on bookkeeping and tax calculations.
Tax Efficiency
Ensure you claim all allowable expenses and reliefs to minimise your tax bill.
HMRC Compliance
Accurate Self-Assessment submissions before deadlines, avoiding penalties.
Business Insights
Understand your profitability, cash flow, and areas for business improvement.
Allowable Expenses for Sole Traders
Many sole traders miss out on legitimate expense claims. We ensure you claim everything you're entitled to:
Office Costs
Stationery, phone bills, postage, printing, software subscriptions.
Travel Expenses
Vehicle costs, fuel, parking, train/bus fares, accommodation for business trips.
Professional Fees
Accountancy, legal, and professional indemnity insurance.
Marketing Costs
Website costs, advertising, business cards, online marketing.
Home Office
Proportion of rent, mortgage interest, utilities, council tax, insurance.
Equipment & Stock
Computers, tools, machinery, raw materials, and stock for resale.
📝 Remember: You can claim a portion of mixed-use expenses (like home office or mobile phone) for business use.
Our Simple Sole Trader Process
Initial Setup
We register you with HMRC (if needed) and set up your accounting system.
Regular Bookkeeping
You send receipts/invoices monthly via our app, email, or post.
Quarterly Review
We prepare management reports showing your profit & cash position.
Year-End Accounts
We prepare your annual accounts and calculate taxable profit.
Self-Assessment
We complete and submit your tax return, advising on tax payments.
Our Sole Trader Services
Focus on Your Business, Not Your Books
As a sole trader, your time is best spent serving customers and growing your business. Let MHC & CO handle your accounting with fixed monthly fees, giving you clarity, compliance, and peace of mind.
Ready to Streamline Your Accounts?
Contact MHC & CO today and let our experts handle your Accounts.
MHC & Co.
Chartered Accountants
54 Gloucester Road
North,
Bristol
BS7 0SJ
Contact Us
Tel: +44 333 789 1010
Fax: +44 117 3737 449
Email: info@mhcandco.co.uk
Get Started
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