You’ve recently started your own business as a sole trader. You are worried that you don’t know what you don’t know – but there is no way that you can justify expensive accountants fees until you are making a bigger profit. What can you do to stay on top of your books, make sure you don’t get yourself in trouble, and keep your tax bill as low as possible?
There are a few things you should do:
- A lot of accountants offer free initial consultations, so take advantage of this and have a chat with an accountant about your business to get some advice on tax deductible expenses which are immediately relevant to what you do;
- Make sure you keep track of your numbers. Set up a simple spreadsheet and record every sale, and every expense;
- Check you have informed HMRC that you are self employed – there are penalties if you don’t;
- Make sure you register for self assessment online. Its easier to complete your tax return online, and you get an extra three months to do it in;
- Find someone who you can go to if you need to ask a question (or three)!
One of my earlier blog posts gives you some other tips on doing your own accounts. I’m on a mission this year to help sole traders who can’t afford an accountant, make sure you like my facebook page for hints and tips, and for special offers that might do exactly that!
