Core compliance · Self-employed
Year-end accounts for sole traders: income, allowable expenses, cash basis or accruals, National Insurance, payments on account and MTD for Income Tax readiness.
Short answer
Sole trader accounts summarise your business income and allowable expenses for the tax year so the profit can go on your Self Assessment return. Most sole traders use the cash basis. We prepare the figures, check every expense, calculate Income Tax and Class 4 National Insurance and file the return with HMRC.
Content updated 21 October 2026. Official references are listed below.
Regulated and qualified through ICAEW, ACCA and AAT memberships held across our team
As a sole trader you and the business are the same person for tax. You don't file accounts at Companies House, but HMRC expects accurate figures behind the self-employment pages, and from April 2026 many sole traders move to Making Tax Digital quarterly updates.
Income and expenses reconciled
Cash basis or traditional accounting
Allowable expense and mileage review
Income Tax and Class 4 NI calculated
MTD for Income Tax readiness
Turnover, allowable business expenses, capital allowances on equipment and any adjustments for private use. Since 2024/25 the cash basis is the default, which records money when it actually comes in and goes out; larger or more complex businesses may choose traditional accruals accounting.
Profits are now taxed on a tax-year basis (6 April to 5 April), so an accounting date other than 31 March or 5 April requires apportionment between tax years.
Use of home as office, mileage at HMRC approved rates, phone and broadband business use, professional subscriptions, software, insurance and training that updates existing skills. We go through each category with you rather than relying on a bank statement summary.
If your expenses are small, the £1,000 trading allowance may be better than claiming actual costs. We compare both.
Profits are taxed with your other income through Self Assessment. Class 4 National Insurance is 6% on profits between £12,570 and £50,270 and 2% above. Class 2 is no longer compulsory, but voluntary contributions can protect State Pension entitlement for those with low profits. Payments on account apply once your bill exceeds £1,000.
Rates, thresholds and dates reflect the UK position at the content update date. Check current GOV.UK guidance, or ask us, before relying on them.
From 6 April 2026 sole traders and landlords with qualifying income above £50,000 must keep digital records and send quarterly updates, with the threshold falling to £30,000 from April 2027 and £20,000 from April 2028. We set up compatible software and can submit the updates for you.
Primary references
Google reviews
“I had a positive experience with Accotax. The work was completed promptly, my tax return was successfully filed, and I received a refund of overpaid tax. I found the cooperation efficient and helpful. Special thanks to Muhammad Saifullah for his assistance.”
“I am very satisfied with the service provided by Muhammad Saifullah. He has been handling my tax situation in the UK with great professionalism, clarity and attention to detail. He took the time to explain every step of the process and made a complex situation much easier to understand. I felt confident and well supported throughout.”
“We worked with a few different accountants before finally settling with Accotax, and we're really glad we did. They take the time to understand how our business works and what our needs are. Anum, who looks after our account on a day-to-day basis, including reconciling invoices and preparing the annual accounts, is amazing, professional, efficient, and follows the processes we have put in place together. Accotax has made our accounting experience much smoother and easier. We see them as a long-term partner as our business continues to grow. I would 100% recommend them.”
Frequently asked
Not at Companies House, but your figures go on the Self Assessment return and HMRC can ask to see the records behind them.
The online return and any tax due are due by 31 January after the end of the tax year.
Most small sole traders do. Traditional accounting can suit businesses with stock, large credit sales or significant borrowing.
Usually when profits are consistently high enough that Corporation Tax and dividends cost less than Income Tax and NI. Use our comparison tool or ask us.
Only if taxable turnover exceeds £90,000 in a rolling 12 months, or voluntarily if it helps.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
Included approach
Ready when you are
Two ways to work with us
Everything is fixed price and agreed before we start. Prices are the same whether you are in London, Morden, Croydon or anywhere else in the UK.
All-inclusive packages
One fee covering your company’s filing calendar, with the price based on your turnover band.
One-off online filing
No monthly commitment. Add what you need to one basket and pay by card, with government fees shown separately at cost.
Not sure which fits? Book a free consultation or get an instant quote.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
