Hey New Sole Traders! A Few Friendly Pointers! 👋

So, you're taking the leap and becoming a sole trader? That's fantastic! But, before you dive in, here are a few things to keep in mind:

• Record Keeping is Your Superpower! 🦸‍♀️

  • Seriously, keep EVERYTHING! Invoices, receipts, bank statements – you name it! It'll make tax time a breeze and help you understand your business's financial health.

  • Consider using accounting software or even a simple spreadsheet to stay organised.

• Separate Those Bank Accounts! 🏦

  • Mixing personal and business finances is a recipe for confusion, so open a dedicated bank account. Trust us, it'll save you a lot of headaches. Here are some good ones to consider - Mettle, Revolut, Starling & Tide.

• Know Your Deadlines! 📅

  • Those HMRC deadlines are important! Mark them in your calendar, set reminders, do whatever it takes to avoid those late fees.

  • Registering for self assessment, and paying your taxes on time are very important.

• Don't Forget National Insurance! 🤝

  • It's not just about income tax. Remember those National Insurance contributions! They're important for your future state pension.

• VAT: Keep an Eye on That Turnover! 📈

  • If your turnover is getting close to £90,000, you'll need to register for VAT. Keep track of your sales!

• Get to Grips with Expenses! 🧾

  • Understanding what you can claim as business expenses can significantly reduce your tax bill. Do some research or chat with an accountant.

• Don't Be Afraid to Ask for Help! 🙋

  • Being a sole trader can feel a bit lonely at times. Don't hesitate to reach out to other business owners, accountants, or HMRC for advice.

• Liability:

  • As a sole trader your personal assets are at risk. If your business has debts, or legal issues, your house, car, and savings could be used to pay them.

• Your Address:

  • When you register as a sole trader, your home address can be publicly available.

• Enjoy the Journey! 🥳

  • Being your own boss is an exciting adventure! Celebrate your successes and learn from your challenges.