Do I need an accountant as a sole trader?
You are not legally required to use an accountant as a sole trader in the UK. However, most sole traders who work with a professional accountant save more in tax than they pay in fees. An accountant ensures your self assessment is accurate, identifies all allowable expenses, keeps you compliant with HMRC deadlines, and reduces the risk of penalties, investigations, or overpaid tax.
Can you help me if I have never filed a self assessment before?
Yes. We will register you with HMRC if needed, explain what is required, and get everything filed correctly. Whether it is your first tax return or you are catching up on previous years of unfiled returns, GoForma guides you through every step without jargon.
How much do sole trader accountants cost?
Sole trader accountant fees typically range from budget online services at the lower end through to high-street chartered accountants at higher rates. GoForma offers fixed-fee plans that include a dedicated named accountant, self assessment filing, and FreeAgent software. Get an instant online quote to see the price for your situation.
As a sole trader do I need a business bank account?
You are not legally required to have a separate business bank account as a sole trader, but it is strongly recommended. Keeping personal and business finances separate makes bookkeeping substantially simpler, makes expense tracking more reliable, and significantly reduces the risk of errors in your tax return.
Do sole traders need to register with Companies House?
No. Sole traders do not register with Companies House and do not file accounts publicly. You only register with HMRC for Self Assessment and, if applicable, for VAT.
What records must I keep as a sole trader?
HMRC requires sole traders to keep records of all business income and expenses for a minimum of five years and ten months after the end of the relevant tax year. This includes sales invoices, purchase receipts, bank statements, mileage records, and any other evidence of business transactions. FreeAgent, included free with all GoForma packages, stores and organises all records digitally.
Can you help with late or overdue self assessment returns?
Yes. GoForma files late returns on your behalf, communicates with HMRC, and works to minimise or appeal any late filing penalties where possible. We regularly help new clients resolve years of overdue returns.
What expenses can I claim as a sole trader?
Sole traders can deduct costs incurred wholly and exclusively for business purposes. Common allowable expenses include office costs, business mileage at 45p per mile for the first 10,000 miles, the business proportion of phone and internet bills, marketing and advertising, professional fees including accountant fees, equipment, and the business proportion of home running costs if you work from home.
What is the self assessment deadline for sole traders?
The online Self Assessment deadline is 31 January each year, covering the previous tax year (6 April to 5 April). For the 2025/26 tax year, the filing and payment deadline is 31 January 2027. Paper returns must be submitted by 31 October.
What taxes do sole traders pay?
Sole traders pay Income Tax on their profits above the Personal Allowance and Class 2 and Class 4 National Insurance contributions. If turnover exceeds £90,000 in a rolling 12-month period, VAT registration and filing is also required.
What is the VAT threshold for sole traders in 2025/26?
The VAT registration threshold is £90,000 in any rolling 12-month period. If your taxable turnover exceeds this amount, you must register for VAT with HMRC and begin charging VAT on eligible sales. GoForma advises on the optimal time and VAT scheme for your business.
What is Making Tax Digital and does it apply to me?
Making Tax Digital for Income Tax (MTD for ITSA) requires sole traders to submit income and expense summaries to HMRC quarterly rather than annually. It becomes mandatory from 6 April 2026 for sole traders with qualifying gross income over £50,000. GoForma handles all MTD submissions using HMRC-approved FreeAgent software.
Can I switch to GoForma from my current accountant mid-year?
Yes, switching is straightforward and GoForma handles all the administrative work. We issue a professional clearance request to your current accountant, collect all relevant documents, complete all HMRC agent authorisation changes, and set up your FreeAgent account. Most switches are fully completed within 5 to 10 working days.
When should a sole trader consider switching to a limited company?
Most accountants advise considering a limited company when your taxable profits consistently exceed £30,000 to £40,000 per year, as the tax efficiency of paying yourself via salary and dividends typically outweighs the additional compliance costs. You might also consider incorporating if you need to take on investors or want to separate personal and business liability.
