Accounting Services for Sole Traders, Self-Employed, Freelancers & Contractors.

Self Employment is the simplest way to start a business, if you start working for yourself, you’re classed as a sole trader. This means you’re self-employed. You can be both employed and self-employed at the same time. For instance, if you work for an employer during the day and for yourself in the evenings or over the weekend. We have seen a lot of people taking this option in these difficult times, where after an office job you will find a lot of people also doing Uber rideshares and Deliveries. If you are self-employed you would need to inform HMRC of it within 3-months of you starting your self-employment and would need to complete a yearly Self-Assessment tax return. Our accountants for self-employed London can complete and file your return online or fill in a paper form.

Muhit & Co are specialised self-assessment tax accountants in London. Preparation & submission of your Personal Income tax return can be a very daunting exercise, particularly when you need to report, and calculate tax thereon, various sources of income. Your dedicated accounts manager will walk you through hand in hand in your financial and taxation affairs by keeping you up to date with all of your filing obligations with HMRC. Also, we will ensure that you do not pay a penny more in taxes than you have to and are able to claim back all available tax reliefs to you.

As a leading accounting firm for sole traders and freelancers in London, we provide you with the expert accountancy and tax advice you require. We aim to become a trusted partner, who you can turn to for strategic business advice and insights into how to grow your business.

Best Breed of Accountancy & Tax Advisors for Limited Companies in London.

We have years of experience looking after the tax affairs of unincorporated business owners. We also give advice on a wide range of business tax matters including:

Preparation of business income tax computations
Self Employment Registration with HMRC
Income tax planning
Incorporating sole traders as limited companies
Business succession planning
Revenue & Customs enquiries and investigations
Sales of businesses and business assets

All Inclusive Service

We aim to keep everything simple. We provide an all-inclusive service which helps you to get set up, maximise profits and be more tax efficient, giving you greater peace of mind and letting you concentrate on growing your business.

Proactive in Nature

We take a proactive approach in accounting and finance. Anticipating regulation changes we are always prepared for what’s to come and with the right set of advise for you to save you both money and time.

Your Own Dedicated Accountant

Our accountants are hand-picked to manage your accounts, to ensure you receive the best financial support possible. Your accountant will keep you in line with the demanding tax laws and monitor your finances on a regular basis.

Does IR35 affect me?

The IR35 legislation is designed to prevent workers from avoiding tax through ‘disguised employment’. This is where a self-employed freelancer operates as a limited company, and therefore receives the accompanying tax benefits, but is doing the same job and working under the same constraints as an employee.

What does self-employed mean?

To be self-employed simply describes your employment status. It means that you are not employed but rather working for yourself to generate an income. To HMRC there will be certain indicators which demonstrate you are self-employed such as:

You run your own business and are solely responsible for the success or failure of it
You’re able to choose who your customers or clients are and can have several of them at the same time
You decide how, where and when you do your work
You are able to employ other people and pay them yourself
You have to provide your own equipment necessary to complete your work
You are responsible for fixing problems or dealing with unsatisfied customers/clients even if that means working in your own time
You can decide how much you want to charge for your products or services
You sell goods or services to make a profit

What is Self-Assessment Tax Return?

A Self Assessment (or Self Assessment tax return) is a form that self-employed individuals or Sole traders are required to submit to HMRC every year. It details how much you’ve earned and your sources of income, which enables HMRC to work out the Income Tax and National Insurance you need to pay.

When do I need to file my UK tax return?

The UK tax year ends on 5th April 2020. The deadline for filing a paper tax return is 31st October 2020. Online tax returns must be filed before 31 January 2021.

You must pay any tax due to HMRC by 31st January 2021.

What records do I need to keep if I am Self-Employed?

If you are self-employed you need to keep records of anything to do with your business for a minimum of 6 years. These include, but not limited to:

Cashbooks
Invoices
Business Related Mileage records
Bank statements
Receipts for purchases
Business Expenses
CIS vouchers

How much tax will I pay from self-employment?

You can earn up to £12,500 before you have to pay any tax. Subsequently:

income in-between £12,500-£50,000 will be taxed at 20%,
income earned from £50,000 to £150,000 will be taxed at 40%
income above £150,000 will be taxed at 45%.

“Muhit & Co understands our business; they give us more than any other Accountancy service we have ever received in the past. They are extremely commercially aware and very current when it comes to changes in tax policy. ”