Accountants for self-employed

Accountants for Self-employed

As accountants for self-employed businesses, we specialise in saving you and your business tax. Do I need an accountant if I am self-employed? This is a common question in which we will explore.

A large part of the economy is funded by small businesses. At Cheltenham Tax Accountants we understand what it means to be a small business. This is why we have just started the ‘small business hustle podcast‘.

As self-employed accountants we get you!

This tends to be the perception from people that do not have experience with a small business. Being a small business owner is hard, very hard. There is a lot of blood sweat and tears that goes into starting let alone running a small business. Here are some of the common things that need to be considered or done when starting a new small business;

• Discuss with an accountant or research yourself what business structure is best for you. This is usually starting as a self-employed person, IE a sole trader or setting up your own limited company
• Speak to an accountant about your taxes, what you need to pay and when you need to pay it. Being self-employed is very different from working as an employee where you are taxed each time you get paid.
• Open a business bank account. Do you need a dedicated business bank account?
• Business insurance – what types of business insurance do I need?
• Produce a business plan, how is the business going to work?
• Create a cash flow budget so you can plan your growth and how you are likely to be paid.
• What accounting and bookkeeping system do I need? Should I use Xero, spreadsheets or just keep my bank statements?
• Do I need to register for VAT? Or what is VAT!
• What do I need to do if I want to take on an employee for the first time?
• Do I need an accountant?
• Do I need a bookkeeper?

These are literally just a few of the many questions a new small business owner may ask themselves. As accountants for self-employed people we can cover many of these questions and more as part of our free meeting.

Call us on 01242 528412 to arrange a free discovery call now

Accounting requirements for self-employment

As a self-employed person, whether you are a sole trader or in a partnership, you will need to file an annual self-assessment tax return to HMRC. The tax year ends on 5th April each year.

What is the deadline to submit my tax return?

The deadline to submit your self-assessment tax return is 31st January following the tax year that has just ended. For example, if the tax year is 5th April 2020 then the deadline to submit the return is by 31st January 2021.

When do I need to pay my self-employment tax?

You will be required to pay your self-assessment tax by 31st January following the tax year that has just ended. This is the same as the tax return submission deadline.

What is a payment on account?

Many first-time self-employed workers struggle with payments on account. It is a payment towards the following tax year. This is set as 50% is the first payment on account due by 31st January and another 50% as the second payment on account due by 31st July. These payments on account are accounted for as part of your total tax bill due by 31st January. What you have already paid will be treated as a credit on your account for that particular tax period.

Can I do my own accounts?

We have a separate blog post and video discussing whether you can prepare your own accounts HERE. We will not spoil this for you!

Do I need an accountant if I am self-employed?

It is not a legal requirement to have an accountant. However, a good accountant will not only ensures you are doing everything correctly but will save you at last their fees in tax savings. As accountants for self-employed businesses we specialise in saving you tax,

This is our guarantee to our clients.

Register for self-assessment

If you haven’t already you can register for self-assessment with HMRC on this page.