A key growth driver for the UK economy has been the success of the self employed and sole trader sector. In terms of the exact economic contribution made, as recently as 2014 it was calculated that the sector was responsible for 80% of growth – an incredible figure which underlines just how important this form of business is.
Despite this obvious importance, many sole traders and self employed people experience a stifling of their success due to the amount of resources required to deal with administrative matters, in particular tax reporting. With a strong likelihood of yet more tax obligation reporting requirements being imposed, now is the time to remind everyone that being a sole trader or self employed does not mean that you need to do everything on your own.
With 2016 being a rather tumultuous year in character, there is an even greater intensity than usual in respect what the Government’s Autumn Statement entails. Of the many matters which are expected to be addressed the approach which the new Chancellor of the Exchequer will take towards the ‘Making Tax Digital’ (MTD) initiative is of particular interest. Whilst the fundamental idea of MTD is to make tax reporting far easier the plan to make digital tax returns a quarterly rather than annual activity might prove to undermine the benefits.
Several bodies, in particular the Association of Taxation Technicians, have raised concerns about how quarterly tax return obligations would impact sole traders. The widely held view is more frequent reporting – even if it is in a simplified digital format – will negatively impact on their resources for generating new business. With this in mind, it is vital to remember that being a sole trader does not mean you must handle returns alone. You can seek help from accountants.
Handling self-assessment tax returns for sole traders is something which is at the forefront of the accounting services we offer across Greater London. We have the capacity to handle your tax returns and audited result requirements on your behalf. Our work is carried out for you in a way that seeks to place you in the most beneficial taxation position possible, with our fees being lower than the cost of resources if you were to do the work yourself.
Quite a few people have the view that sole traders carry out all matters related to their business alone. This does not have to be the case at all, and in the interests of encouraging business growth it should not be the approach used. We know just how important the contribution of sole traders is to the overall economic performance of our country and we are proud to support this with our expert services.