{"id":5340,"date":"2024-03-13T16:00:13","date_gmt":"2024-03-13T16:00:13","guid":{"rendered":"https:\/\/sagestaging.wpengine.com\/en-gb\/blog\/?p=5216"},"modified":"2025-07-14T14:38:07","modified_gmt":"2025-07-14T13:38:07","slug":"manage-your-accounts-sole-trader","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/manage-your-accounts-sole-trader\/","title":{"rendered":"How to manage your accounts and bookkeeping as a sole trader"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to manage your accounts and bookkeeping as a sole trader\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2024-03-13T16:00:13+00:00\">13 March, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to manage your accounts and bookkeeping as a sole trader\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/manage-your-accounts-sole-trader\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/keirthomasbryant\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair.jpg 760w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Keir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p>As a sole trader, bookkeeping and managing your accounts are the key tasks you have to deal with.<\/p>\n\n\n\n<p>But because you\u2019re self-employed and looking after so many aspects of the business yourself, it can be easy to let the accounts slide as other tasks frequently take priority.<\/p>\n\n\n\n<p>This article offers advice on what you need to do manage your accounts and bookkeeping as a sole trader.<\/p>\n\n\n\n<p>It talks about getting set up, taxes you\u2019ll need to be aware of, what you need to do to register for VAT (if necessary), and how to stay on top of your finances.<\/p>\n\n\n\n<p>Here\u2019s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#what\">What is bookkeeping and why is it important?<\/a><\/li>\n\n\n\n<li><a href=\"#first\">First steps when managing your accounts as a sole trader<\/a><\/li>\n\n\n\n<li><a href=\"#expenses\">What expenses can you claim as a sole trader?<\/a><\/li>\n\n\n\n<li><a href=\"#taxes\">What taxes do you need to pay as a sole trader?<\/a><\/li>\n\n\n\n<li><a href=\"#open\">Open a separate bank account for your business<\/a><\/li>\n\n\n\n<li><a href=\"#records\">What records do I need to keep as a sole trader and for how long?<\/a><\/li>\n\n\n\n<li><a href=\"#how\">How cloud accounting software can help you<\/a><\/li>\n\n\n\n<li><a href=\"#faq\">FAQs on managing your accounts as a sole trader<\/a><\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-6e8bc5b3-034b-4267-aecc-a99e8aca056e\">Unlock the top 10 tips for accounting as a sole trader here<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What is bookkeeping and why is it important?<\/h2>\n\n\n\n<p>Bookkeeping involves keeping accurate records of all the money going in and out of your business.<\/p>\n\n\n\n<p>It can be a daunting task as every receipt, <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/process-an-invoice\/\">invoice<\/a>, and bill must be logged, however it\u2019s essential for creating the likes of accurate tax returns and business plans.<\/p>\n\n\n\n<p>While accounting covers the more general process of managing your accounts and can involve strategic planning, sole trader bookkeeping goes into the details.<\/p>\n\n\n\n<p>Every single point of income or expenditure is noted, from business transactions to company expenses.<\/p>\n\n\n\n<p>This should be a daily process, to ensure all the transactions from the day are logged correctly.<\/p>\n\n\n\n<p>As a sole trader, the legal and financial responsibility falls on you.<\/p>\n\n\n\n<p>Any errors that incur fines or even legal action will affect you personally, as you are not protected by a Limited Liability Company (LLC).<\/p>\n\n\n\n<p>So, it\u2019s useful to get into good habits right from the start and set up a sensible workflow to help streamline and automate any part of the process you can.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"first\">First steps when managing your accounts as a sole trader<\/h2>\n\n\n\n<p>Firstly, you\u2019ll need to register with HMRC and make sure you understand its rules on&nbsp;running&nbsp;and&nbsp;<a href=\"https:\/\/www.gov.uk\/limited-company-formation\/choose-company-name\">naming<\/a> your business.<\/p>\n\n\n\n<p>As a sole trader, you\u2019re responsible for the business. You\u2019ll be classed as self-employed, although you can still take on staff.<\/p>\n\n\n\n<p>As a sole trader, you must:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep records of your sales and expenses<\/li>\n\n\n\n<li>Submit an annual&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/file-a-tax-return-online\/\">Self Assessment tax return<\/a>&nbsp;and pay&nbsp;<a href=\"https:\/\/www.gov.uk\/topic\/personal-tax\/income-tax\">income tax<\/a>&nbsp;on your profits<\/li>\n\n\n\n<li>Pay Class 2 (this is <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/national-insurance-changing-2024\/\">no longer the case from 6 April 2024<\/a>) and Class 4&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/self-employed-national-insurance-tax\/\">National Insurance<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/register-for-vat-online\/\">Register for VAT<\/a>&nbsp;(if your turnover is over the&nbsp;VAT threshold \u2013 although you can do this even if it\u2019s under the threshold)<\/li>\n\n\n\n<li>Take responsibility for any business debts.<\/li>\n<\/ul>\n\n\n\n<p>You\u2019ll need to keep a record of all your invoices and receipts for six years.<\/p>\n\n\n\n<p>HMRC carries out random checks on businesses to check they are compliant with tax regulations, so you\u2019ll need to hang on to all the paperwork and make sure it\u2019s accurate and up to date.<\/p>\n\n\n\n<p>Anything that\u2019s a business cost (known as <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/allowable-expenses-self-assessment-tax-return\/\">allowable expenses<\/a>) can help reduce your tax bill at the end of the year.<\/p>\n\n\n\n<p>This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Computers equipment and internet access<\/li>\n\n\n\n<li>Rent<\/li>\n\n\n\n<li>Stationery<\/li>\n\n\n\n<li>Phone bills<\/li>\n\n\n\n<li>Travel to customer premises<\/li>\n\n\n\n<li>Motor expenses.<\/li>\n<\/ul>\n\n\n\n<p>It pays to get into good habits from the beginning when it comes to keeping track of receipts.<\/p>\n\n\n\n<p>If you regularly get the train to go and see your clients, always keep the tickets in a separate part of your bag, or buy them online before you go so you have an email record.<\/p>\n\n\n\n<p>When you buy anything for the business, including a coffee \u2018on expenses\u2019, always request the VAT receipt\u2014some shops don\u2019t issue a receipt by default.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"expenses\">What expenses can you claim as a sole trader?<\/h2>\n\n\n\n<p>As a sole trader there are a <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/allowable-expenses-self-assessment-tax-return\/\">variety of expenses<\/a> you can claim to offset your expenditure.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Office supplies: <\/strong>Such as office furniture, a work computer, and stationery<\/li>\n\n\n\n<li><strong>Travel and accommodation: <\/strong>Transport costs including fuel or hotel stays that you incur for work<\/li>\n\n\n\n<li><strong>Some clothing: <\/strong>Uniforms, or performance-specific clothes, for example<\/li>\n\n\n\n<li><strong>Your staff: <\/strong>Contractor pay or staff salary<\/li>\n\n\n\n<li><strong>Commodities that you buy and sell:<\/strong> Stock and raw materials, such as gold<\/li>\n\n\n\n<li><strong>Insurance and other financial costs:<\/strong> Bank charges, for example<\/li>\n\n\n\n<li><strong>Your business premises: <\/strong>Costs such as heating, lighting, and business rates<\/li>\n\n\n\n<li><strong>Your business promotion:<\/strong> The cost of running websites, marketing, and advertising your company are all claimable<\/li>\n\n\n\n<li><strong>Business and employee training: <\/strong>Courses to advance your skills or those of your team.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"taxes\">What taxes do you need to pay as a sole trader?<\/h2>\n\n\n\n<p>As a sole trader, there are several taxes you have to pay to HMRC:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Income tax<\/h3>\n\n\n\n<p>As a sole trader, detailed bookkeeping is crucial as you must report your business profits at the end of each tax year.<\/p>\n\n\n\n<p>Your accountant (if you have one) will need a full set of your accounts showing your sole trader income and expenditure, from which they can work out your tax liability.<\/p>\n\n\n\n<p>You need to pay your tax on this income by the following 31 January (you need to submit your tax return by this date too).<\/p>\n\n\n\n<p>It makes sense to complete this process much sooner \u2013 don\u2019t put it off until the night before the deadline.<\/p>\n\n\n\n<p>Once you\u2019re in the system and have paid your first return, you need to pay tax twice a year, on 31 January and 31 July.<\/p>\n\n\n\n<p>This is known as <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-payment-on-account\/\">payments on account<\/a>.<\/p>\n\n\n\n<p>Each payment is equal to half the amount of tax you owe for the previous tax year.<\/p>\n\n\n\n<p><strong>Top tip:<\/strong>&nbsp;It\u2019s good practice to put aside 30% of everything you earn. Consider setting up a separate bank account for this so you know the money is there to pay for tax, National Insurance and VAT when you need it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">National Insurance<\/h3>\n\n\n\n<p>When you set up as a sole trader, you need to&nbsp;let HMRC know.<\/p>\n\n\n\n<p>You need to pay your quarterly Class 2 National Insurance bill, which is a basic payment that goes towards your state pension in the future.<\/p>\n\n\n\n<p>Any extra Class 4 National Insurance payments will be calculated by your accountant at the end of your tax year.<\/p>\n\n\n\n<p><strong>Top tip:&nbsp;<\/strong>Sometimes self-employed people have a mix of permanent employment and freelance work on the go. For example, someone who works in a bank during the week but writes children\u2019s books in the evening or has a side business making jewellery.&nbsp;<\/p>\n\n\n\n<p>Just make sure you\u2019re not doubling up on your National Insurance contributions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">VAT<\/h3>\n\n\n\n<p>As a sole trader, you need to&nbsp;register for <a href=\"https:\/\/www.gov.uk\/how-vat-works\">VAT<\/a>&nbsp;if your turnover is more than the current threshold, which is \u00a385,000.&nbsp;<\/p>\n\n\n\n<p>You can register voluntarily even if you are below the threshold, and some sole traders decide to do this because it implies you\u2019re a more established, trustworthy business.<\/p>\n\n\n\n<p>You\u2019ll be able to claim the VAT back on everything you buy for the business, which will be advantageous if the nature of your business is buying stock and selling it on.<\/p>\n\n\n\n<p>If you charge for your time, like a designer or business coach, registering for VAT voluntarily won\u2019t bring you so many financial advantages.<\/p>\n\n\n\n<p>You can opt for the&nbsp;standard VAT scheme&nbsp;or&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/vat-flat-rate-scheme\/\">Flat Rate VAT<\/a>, which was set up to help reduce the admin load for smaller businesses.<\/p>\n\n\n\n<p>In the Flat Rate scheme, you charge your customers at the standard rate of VAT and pay the money back to HMRC at a lower rate, depending on the nature of your business.<\/p>\n\n\n\n<p><strong>Top tip:&nbsp;<\/strong>Make sure you pick the&nbsp;right category&nbsp;\u2013 there are lots to choose from and some of them sound similar but have different rates. Do double check with your accountant to make sure everything is in order from day one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">PAYE<\/h3>\n\n\n\n<p>As a sole trader, at some point you may need to take on staff. <\/p>\n\n\n\n<p>As a bookkeeper for your sole trader business, you must record the PAYE and National Insurance details accurately and keep them for three years from the tax year-end they are incurred.<\/p>\n\n\n\n<p>This can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employee pay and any deductions you make including pension schemes<\/li>\n\n\n\n<li>Employee absence, including leave and sickness<\/li>\n\n\n\n<li>Expenses or benefits incurred by your staff<\/li>\n\n\n\n<li>Any charity-matching expenses applied to on the <a href=\"https:\/\/www.gov.uk\/payroll-giving\">Payroll Giving Scheme<\/a>.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-6e8bc5b3-034b-4267-aecc-a99e8aca056e\">Unlock the top 10 tips for accounting as a sole trader here<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"open\">Open a separate bank account for your business<\/h2>\n\n\n\n<p>When you start out, it\u2019s a good idea to set up a <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/business-bank-account-small-business\/\">separate business bank account<\/a> so your personal and company finances are kept apart. <\/p>\n\n\n\n<p>This will make it easier for you to manage your accounts and bookkeeping as a sole trader.<\/p>\n\n\n\n<p>It\u2019s one of those jobs you\u2019ll thank yourself for later as your business grows and there are more and more transactions happening relating to the business.<\/p>\n\n\n\n<p>It will also help you keep an eye on&nbsp;cash flow. You need to get into the habit of&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/invoicing\/\">chasing invoices<\/a> early&nbsp;to make sure you have plenty of money to cover your business costs.<\/p>\n\n\n\n<p>You could also consider requesting deposits and staggered payments on larger jobs, rather than waiting for the project to be completed in full before you send your bill.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"records\">What records do I need to keep as a sole trader and for how long?<\/h2>\n\n\n\n<p>Sole trader bookkeeping requires keeping your financial and business records up to date, as a daily process.<\/p>\n\n\n\n<p>HMRC may ask for a detailed breakdown, including receipts, so knowing what to keep track of is essential.<\/p>\n\n\n\n<p>This should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your business sales and income including invoices and receipts<\/li>\n\n\n\n<li>Your&nbsp;personal income<\/li>\n\n\n\n<li>Your&nbsp;business expenses (and those of any staff you employ)<\/li>\n\n\n\n<li>Any applicable VAT&nbsp;records if you\u2019re registered for&nbsp;VAT<\/li>\n\n\n\n<li>Any staff PAYE&nbsp;records if you employ people other than yourself.<\/li>\n<\/ul>\n\n\n\n<p>You may also need to keep other records such as any money you are owed but have not received, your year-end bank balances, or any money you\u2019ve taken out for your own use.<\/p>\n\n\n\n<p>All records and receipts must be kept for a minimum of five years from the 31 January submission deadline of the relevant tax year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how\">How cloud accounting software can help you<\/h2>\n\n\n\n<p>When it comes to managing your accounts and bookkeeping as a sole trader, having an effective, intuitive system in place can make all the difference.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Accurate records<\/h3>\n\n\n\n<p>If you are entering all your transactions into&nbsp;cloud accounting software&nbsp;throughout the year, you\u2019ll be keeping accurate records as you go.<\/p>\n\n\n\n<p>Using <a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/\">cloud accounting software<\/a> as a sole trader also means you can cut down on paper, saving you money and space\u2014the latter may be in short supply in your home office or workshop.<\/p>\n\n\n\n<p>And because each time you add a new supplier to the system you\u2019ll be making note of their full contact details, you don\u2019t have to worry about keeping an address book up to date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Better chance of getting paid on time<\/h3>\n\n\n\n<p>It\u2019s good practice to keep on top of your accounts. <\/p>\n\n\n\n<p>Depending on the size and complexity of your business, this could be monthly or weekly. By finding time to do it regularly you can quickly clear up any queries\u2026 what was that receipt for again?<\/p>\n\n\n\n<p>Or you can spot someone who hasn\u2019t paid their invoice on time and gently suggest that you can\u2019t do anymore work until you\u2019re all square.<\/p>\n\n\n\n<p>You can create also&nbsp;quotes and invoices,&nbsp;customised with your branding and full contact details, which can be emailed to customers in PDF format. <\/p>\n\n\n\n<p>This speeds up the whole process of getting the work\u2014and&nbsp;getting paid for it.<\/p>\n\n\n\n<p>And when it comes to getting paid for the products or services you&#8217;re selling, using an <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-are-recurring-payments\/\">online payments<\/a> provider such as GoCardless or Stripe can make life easier.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Submit VAT returns to HMRC<\/h3>\n\n\n\n<p>What counts here is speed and accuracy. With accounting software, you can run off your VAT return in minutes, check the figures and submit it to HMRC.<\/p>\n\n\n\n<p>If you set up a direct debit, the money will be deducted on the 10th of the month following your VAT quarter, meaning no missed deadlines and no penalties\u2014good news for the sole trader keeping a close eye on their bank balance.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-e8fae86a-9444-4657-a009-eba49287d7fd\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-e8fae86a-9444-4657-a009-eba49287d7fd\"\n\t>Get your free cash flow forecast template and use it to project how much cash will be flowing in and out of your business, and when<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faq\">FAQs on managing your accounts as a sole trader<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Do sole traders need bookkeeping software?<\/h3>\n\n\n\n<p>There can be a lot of record keeping for sole traders to stay on top of, so bookkeeping software can make keeping accurate records easier. <\/p>\n\n\n\n<p>The government is phasing out non-digital forms of accounting. <\/p>\n\n\n\n<p>From April 2026, the government will introduce <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\">Making Tax Digital for Income Tax Self Assessment<\/a>, where accounting must be done using cloud-based software. <\/p>\n\n\n\n<p>So, starting now will give you plenty of time to get used to the process before it becomes mandatory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do I need an accountant as a sole trader?<\/h3>\n\n\n\n<p>As a sole trader, you\u2019ll be wearing many hats for your business. <\/p>\n\n\n\n<p>However, accounting is one that you shouldn\u2019t scrimp on as any inaccuracy or failure to register correct tax information can have repercussions for you personally. <\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/how-to-choose-an-accountant-for-your-business\/\">Hiring the right accountant<\/a> for your sole trader business will help free up your time to concentrate on other essential areas, like sales and marketing, or strategy planning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do I have to pay VAT as a sole trader?<\/h3>\n\n\n\n<p>If your sole trader business earned more than \u00a385,000 in the past 12 months, or will be expected to go over the threshold in the next 30 days, you must register for VAT, and by 30 days of having exceeded the threshold (note, the threshold <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/spring-budget-2024-announcements-business\/\">increases to \u00a390,000 from April 2024<\/a>)<\/p>\n\n\n\n<p>The government has also made MTD for VAT mandatory. <\/p>\n\n\n\n<p>Now any VAT-registered business, including sole traders, must submit all VAT returns digitally and keep records with cloud accounting software. <\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/accounting\/features\/vat\/\">Choosing the right software<\/a> can ensure your records are always up to date.<\/p>\n\n\n\n<p><em>Editor&#8217;s note: This article was first published in September 2018 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">10 tips to simplify accounting as a sole trader<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>From paying tax to managing cash flow, there\u2019s a lot to cover when it comes to business accounting. In this guide, we cover 10 actionable tips to make your accounting faster and easier, so you can feel confident that you\u2019ve got it all under control. <\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1233\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/10\/Top-10-tips-for-accounting-for-sole-traders-1233x810.jpg\" class=\"single-cta__image\" alt=\"Woman working in retail at the computer\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/10\/Top-10-tips-for-accounting-for-sole-traders-1233x810.jpg 1233w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Want to know how to manage your accounts while you focus on your business as a sole trader? This in-depth guide offers some top tips for you.<\/p>\n","protected":false},"author":280,"featured_media":3396,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[12,27],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,75],"imagine_tag":[287,77,312,109],"coauthors":[369],"class_list":["post-5340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-start-business","tag-tax","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/12\/GettyImages-645425511_super.jpg","imagine_tags":{"287":"Accounting Individual","77":"Accounting software","312":"Payments","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/5340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=5340"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/5340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/3396"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=5340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=5340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=5340"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=5340"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=5340"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=5340"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=5340"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=5340"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=5340"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=5340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}