Are you a sole trader in the UK? There are many advantages you can enjoy being self-employed. From having full control of the work you do to being able to enjoy working when you want, more people are choosing to become self-employed in order to be their own businessman or woman.
But, being a sole trader does mean you have more responsibilities. In particular, you need to deal with all your finances. Are you considering an accountant and is this something that a sole trader needs? Let’s take a closer look.
Is an Accountant Mandatory for Sole Traders?
When you are self-employed or a sole trader, a lot of responsibilities are going to fall on you. For example, you are the one that is going to have to find work and interact directly with clients. Completing tax returns is also going to be your responsibility and something you have to complete every year.
In particular, just like any other company, you are going to have to keep your own business accounts. This is something that is not as easy as it sounds and it is one of the main reasons why sole traders choose to hire an accountant.
But, is it mandatory for sole traders to have an accountant? The answer is no. There is no legal requirement that states self-employed people have to have an accountant on their team. This is a decision you can make on your own. It is worth pointing out that a lot of sole traders do choose to hire an accountant.
If this is an option you would like to explore, you can head to http://rosspartners.co.uk/ and enquire about these services. It is beneficial to choose an experienced team so that you can enjoy peace of mind and know that your accounting is all taken care of.
What are the Benefits of Hiring an Accountant?
If you are considering hiring an accountant as a sole trader, you will want to know about the advantages of this. So, here are some of the benefits you can look forward to.
You Can Save Time
If you have ever tried to keep records during the working year and completed tax returns, you will know just how time-consuming it can be. All of this paperwork takes time to complete and keep correct and this is something that a lot of sole traders struggle with during normal working hours.
The good thing about hiring an accountant is that you can pass this responsibility to someone that has the time and expertise to deal with it. An accountant is going to assist you and this frees up a lot of time so that you can work on other tasks to do with your business.
You Can Avoid HMRC Penalties
If there is one thing we all know about HMRC, it is that they are strict when it comes to tax return deadlines and accurate records. Even the smallest mistake or being an hour late with your tax return is going to get you into trouble.
If you struggle with deadlines and timekeeping, an accountant can be a worthwhile investment for you. They are going to have the experience to know how to deal with a lot of business tasks for you and this is going to avoid costly HMRC penalties.
Prevent Stressful Situations
Not everyone is good with numbers and having to deal with all of your accounting on your own can be stressful. This is not something you need and this is where an accountant can offer you assistance. They have the training and experience to take over your financial responsibilities and take some of the weight off your shoulders.
You can seek advice from your accountant and know they are going to handle of the difficult tasks you do not like. This allows you to concentrate on growing your business and the day-to-day running’s of being self-employed.
Lower Your Tax Liability
Everybody has to pay taxes. But, there are situations where you are allowed to claim business expenses even if you are self-employed. An experienced accountant is going to be able to offer you advice and find ways to lower your tax liability.
For example, hiring an accountant is something that is an allowable business expense. You can be more efficient and ensure that you are not paying more tax than you are required to as a sole trader. You may be surprised at the allowable business expenses you are not claiming.