Sole Trader Tax

Posted by brampton

  • blog
  • |
  • 20 January , 2021

As a Sole Trader you are required to file a yearly tax return to declare your earnings. These can be confusing and if completed incorrectly can result in fines or missed potential to retain earnings. We recommend using an accountant if you are unfamiliar with the process, especially if you are low on time as filing tax returns can be a time consuming task. 

Brampton Accounting is home to leading tax accountants who have spent many years refining their expertise to ensure that your tax return is filed on time with maximum savings being made. 

Sole Traders, compared to private limited companies, have the increased responsibility that they are incharge of all aspects of their working life including the administration and financial maintenance. Yes we mean their tax returns! We therefore advise that Sole Traders operate with caution when approaching the filing of their tax returns. 

A Sole Trader invests directly from their personal funds, with limitations of course. They are also able to withdraw funds from the business at any time for any reason but must be cautious in doing so as it may negatively affect the business’ future. A sole trader business does not pay its own tax on profits and gains as you do with private limited companies. 

Instead, as outlined in income tax rules and regulations, the profits and gains are accessed as part of the owner’s personal tax. This means that any losses made but the sole trader are offset against the owners personal finances. No tax is charged when profits are withdrawn from the business as all profits are already assessed to tax on the individual as trading profits. As this has possible implications against personal finances we highly recommended utilising an accountant from the start.


Here at Brampton Accounting we have the resources and expertise that will ensure you and your finances are protected. We’ll handle the burden of filing your Sole Trader tax return so that you have time to focus on building your empire. Our service provides accurate and transparent calculations from start to finish with our end goal being to save you money! 

Get in touch to find out how we can help you. It’ll be the best decision you’ll make today!

You may also like…

  • blog
  • |
  • 20 January , 2021

What happens when the Job Retention Scheme Ends?

  • blog
  • |
  • 20 January , 2021

Tax Services London

  • blog
  • |
  • 20 January , 2021

Payroll Accounting

Contact us today to schedule your free, no obligation telephone consultation.

CONTACT US