Trading Accounts

Business Structure Review

The 123 Way

What is included as standard for a fixed fee of £65.00 + vat per month:

Full Contracting health check - is your business performing as best it could - we'll ensure it is.

If you're new to freelance contracting, we'll ensure you start trading in the right way.

Then you can sit back and relax, your ongoing HMRC & Companies House compliance will be taken care of.

The 123 Way - simple & stress-free.

A Sole Trader must prepare a set of trading accounts each year to submit to HMRC along with their personal tax return. It is the responsibility of the proprietor to ensure this is done and filed within the appropriate deadline.

What do trading accounts contain?

Proprietor's Statement

A set of trading accounts will contain a statement from the proprietor, stating that the accounts show a true and fair picture of the business. This will be signed by the proprietor.

Profit & Loss

They will show a Profit and Loss Statement which starts with the turnover of the business (money coming in from clients), minus all business expenses, giving you the profit or loss for the year. This is kind of a review of how well your business has done and is the bases for working out your taxable profit.

What happens to the accounts?

The accounts are submitted to HMRC along with your Self-Assessment tax return usually by 31 January following the end of the tax year.

There are fines and penalties in place for filing late.

This is a simple introduction to what trading accounts contain and why they have to be prepared. There are literally thousands of accountancy and taxation rules that apply when preparing a set of trading accounts and fines and penalties in place if you make a mistake - DIY trading accounts are not a great idea.

Running a Limited Company

Being a Sole Trader

Responsibilities

Business Bank Account

Drawings

Bookkeeping & Records

Trading Accounts

Business Tax

VAT - The Basics

VAT - The Choices

123 Income Illustrator

The 123 Income Illustrator shows you what you can expect to take home from a given contract.

It also compares the differences between freelance contracting through your own Limited Company, through an Umbrella Company, as a Sole Trader or if you were to return to full time employment.

The123 Income Illustrator

Invoicing

Expenses

Expenses - Detailed Guide P1

Expenses - Detailed Guide P2

Personal Tax/Self Assessment

Importance of Information

Important Dates

Calculators

123 Referral

We run a simple referral programme where for every client you refer to The 123 Way we will give you £123.00

For more information check out the link below:

123 Referral

FAQs

Disclaimer:
This information is for general information only. No responsibility is taken for any action taken or refrained from in consequence of its contents. Always seek professional advice before acting.