According to data from the summer of 2023, there are approximately four million self-employed people currently working in the UK. This is not surprising, as self-employment carries a multitude of benefits, although it does present a host of challenges.
Setting up as self-employed is relatively easy - you register with HMRC, and off you go!
The real challenges come after this, as you need to prepare yourself to deal with your income tax, self-assessment tax return, and (potentially) your VAT returns. And to do these properly, you need to have your accounts in order, with accurate record-keeping of all your business activities.
At Prescient Accounting, we are under no illusions as to how difficult this can be - particularly for small businesses in the first year or two of trading. Even beyond this time, as your business grows, it becomes harder to set time aside to complete those necessary tasks.
When you need sound, friendly advice and practical assistance, turn to Prescient Accounting's self-employed accountant services.
Whatever stage you have reached in your self-employment journey, our specialist accountants for self-employed people will be there to ensure that you are fully prepared and equipped for future success.
As a self-employed person, what can you expect from Prescient Accounting?
We aim to empower self-employed individuals like you to thrive by taking the reins of your accounting and taxation. We offer a comprehensive suite of services designed to streamline your finances, boost your efficiency, and keep you compliant with HMRC regulations.
You are welcome to call us to find out more, and to book your free consultation, but here's an idea of what we offer...
Let us know what you need from your accountants, we’re happy to help.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
Each financial year, you'll need to complete a self-assessment tax return, and it isn't a task that most self-employed people look forward to, which is why thousands of them put it off for as long as possible!
However, with our help and guidance, you'll sail through the process with ease.
Here's how we make it look easy:
We work with you to gather all necessary information, keeping you informed every step of the way.
We explore all your taxable income sources, ensuring no hidden revenue streams escape our scrutiny. You will be able to complete the process with complete accuracy.
From operational expenditures to equipment depreciation, we leave no stone unturned when it comes to maximising your deductions and minimising your tax liability by looking into all the different expenses you could claim (more information below). We will also help you claim a tax refund if one is due.
Our accounts specialists ensure that your digital self-assessment form is completed with precision, eliminating typos and ensuring timely, accurate submission. Ideally, this will be completed online (under the Making Tax Digital scheme), although we can help you file a paper form if necessary.
Deadlines are no problem with our proactive approach. We keep you informed and ensure your return reaches HMRC well before the due date, shielding you from the penalties and repercussions of late filing.
Getting to grips with your National Insurance (NI) obligations as a self-employed individual can be confusing due to the ever-changing thresholds, intricate calculations and different classes.
Your Prescient Accounting specialist will guide you through the process, allowing you to complete the task with clarity and confidence.
By assessing your circumstances, we determine whether you fall under Class 2, Class 4, or both. This ensures you are placed in the correct category, saving you from unnecessary contributions or penalties.
Our experienced team calculates your NI contributions based on your taxable profits. We factor in intricate formulas and fluctuating thresholds, ensuring you pay the correct amount while avoiding any misunderstandings with HMRC.
We explore various strategies to potentially reduce your NI liability and maximise your financial benefit. This could involve exploring pension contributions, claiming relief through Married Couples' Allowance, or other relevant options tailored to your unique situation.
Our top priority is to see your business thrive. To this end, we dedicate our service to helping you in any areas that need attention, and our comprehensive accounting services include:
This is always an area that causes problems! Many sole traders and owners of small businesses (or even large businesses!) are unaware of what they are allowed to claim as expenses.
Here are some examples of the most common expenses:
It's imperative to keep accurate records of all your expenses, including receipts and invoices, and only to claim expenses that are wholly and exclusively for your business. HMRC sets limits on certain expenses, so we'll highlight the specific rules for your industry and situation.
However, we will ensure that you save tax wherever possible.
Choosing the right business structure, whether sole trader or limited company, impacts your accounting and tax obligations in the UK. Here's a simplified breakdown of the key differences:
We will advise you on the best option for your circumstances and industry, and explore all allowable schemes and methods to reduce your tax bill.
While we all have to pay tax, there's no reason why you should not claim tax relief when possible. Our expert accountants for self-employed people will ensure that you are fully in control of your tax affairs.
If your business has a turnover of £85,000 or more, you will need to register for VAT.
We will help you to register with HM Revenue & Customs (HMRC) and file your VAT returns accurately and on time when they are due. Again, all avenues will be explored to reduce your tax liability.
At Prescient Accounting, we understand that your time and energy are best spent on growing your business, which is why we offer a comprehensive range of services to take care of the rest.
Ultimately, investing in one of our specialist self-employed accountants isn't just about ticking boxes; it's about gaining a partner who actively contributes to your financial success. With their expertise and guidance, you can focus on what truly matters: growing your business and achieving your financial goals.
Whether you run your own business as a limited company director or you're a sole trader, contact us today to arrange your free consultation and discover how Prescient Accounting can boost your chances of success.
As a self-employed individual in the UK, you can claim deductions on expenses directly related to running your business, such as office supplies, travel costs, and business-related phone bills.
To register for self-assessment with HMRC, you need to visit the HMRC website and complete the online registration process, which involves providing your personal details and business information.
Key financial deadlines for the self-employed in the UK include the 31st January for online self-assessment tax returns and payment of any tax owed, and the 31st July for the payment of any second 'payment on account'.
Self-employed individuals in the UK must register for VAT if their turnover exceeds the VAT threshold over a 12-month period. Once registered, they need to charge VAT on taxable sales and can reclaim VAT on eligible purchases.
For self-employment tax purposes, you should keep records of all sales and income, expenses, VAT records if you’re registered, payroll records if you have employees, and records of personal income.
An accountant can help you save money on taxes by identifying allowable deductions you may have missed, advising on tax-efficient structures for your business, and ensuring you meet all deadlines to avoid penalties.
We believe that the role of the accountant is much more than dealing with pure compliance. That’s why we’re offering a free video or telephone call with one of our team of chartered accountants, to give you straightforward and open dialogue about your tax and accounting affairs.
We are chartered accountants and tax advisers, working with individuals and small and medium-sized businesses. We're a full-service firm, helping people and businesses with all of their tax and accounting needs. About us
