Accountancy Services in Shoreham-by-Sea

Running your own business gives you freedom, flexibility, and control — but it also means you’re responsible for handling your own taxes. For many sole traders, this can feel confusing, especially when balancing client work, invoicing, and everyday business tasks. At Hayson Accountin g , we work with self-employed professionals across West Sussex — from freelancers in Brighton and Hove to tradespeople in Worthing and Chichester — helping them stay compliant and confident at tax time. This guide breaks down the essentials so you know exactly what to expect. 1. What Is a Sole Trader? A sole trader is a self-employed individual who runs their own business and keeps all profits after tax. It’s the simplest business structure in the UK and ideal for freelancers, contractors, and small business owners. However, being a sole trader also means you’re personally responsible for your business debts, tax payments, and record-keeping. There’s no legal separation between you and your business — something every new entrepreneur should understand before starting out. 2. Registering With HMRC If you earn more than £1,000 from self-employment in a tax year, you must register as a sole trader with HMRC . Here’s how to do it: Go to the HMRC website. Create a Government Gateway account. Register for Self Assessment and Class 2 National Insurance . Once registered, HMRC will issue a Unique Taxpayer Reference (UTR) number — you’ll use this for all future tax returns and correspondence. 3. Keeping Accurate Business Records Good record-keeping makes tax time far less stressful. You’ll need to track your income, expenses, and any invoices or receipts throughout the year. What to record: All business income (sales, freelance work, commissions) All allowable expenses (supplies, mileage, software, etc.) Bank statements, invoices, and receipts Using cloud accounting tools such as Xero or QuickBooks can save hours of manual work and reduce the risk of errors. Hayson Accounting helps many sole traders in Crawley , Haywards Heath , and Littlehampton set up these systems to simplify bookkeeping. 4. Understanding Your Taxes As a sole trader, you’ll pay three main types of tax: Income Tax – based on your profits (income minus expenses). National Insurance – Class 2 and Class 4 contributions, depending on your earnings. VAT (if applicable) – if your turnover exceeds £90,000 , you must register for VAT. Pro tip: Set aside around 25–30% of your income in a separate savings account to cover your annual tax bill. This ensures you’re never caught off-guard when the January deadline arrives. 5. Claiming Allowable Expenses Many sole traders lose money by not claiming legitimate expenses. Common allowable deductions include: Office supplies and stationery Business travel and mileage Marketing and advertising costs Professional fees (including accounting services) Software subscriptions and mobile phone bills (if used for work) If you work from home, you can also claim a portion of your household bills — like electricity or broadband — as business expenses. Hayson Accounting can help you identify every deduction you’re entitled to, ensuring you never overpay tax. 6. Filing Your Self-Assessment Tax Return Each year, you’ll need to submit a Self Assessment tax return — usually by 31 January following the end of the tax year (5 April). You can file online through HMRC or have your accountant handle it for you. An experienced accountant ensures: All figures are accurate and compliant All eligible deductions are claimed Deadlines are met to avoid penalties Many sole traders across West Sussex choose to outsource their tax returns to Hayson Accounting for peace of mind and time savings. 7. Planning Ahead for Growth As your income increases, it might make sense to transition from sole trader to a limited company . This can bring tax advantages and added legal protection — but it’s not always the right choice for everyone. A quick consultation with your accountant can help you decide when (or if) incorporation is beneficial for your situation. Final Thoughts Understanding your taxes as a sole trader doesn’t have to be complicated. With the right systems, consistent record-keeping, and expert advice, you can stay compliant, stress-free, and focused on growing your business. At Hayson Accounting , we specialise in helping sole traders and small business owners across West Sussex and beyond manage their finances with confidence. Whether you need help setting up your books, filing your tax return, or planning for the future — we’re here to support you every step of the way. FAQs 1. Do I need an accountant as a sole trader? You’re not legally required to have one, but a professional accountant can help reduce your tax bill, avoid penalties, and save you time. 2. When do I pay my Self Assessment tax bill? The main payment deadline is 31 January , but many people also have a payment on account due on 31 July . 3. Can I work with Hayson Accounting if I’m not based in West Sussex? Yes! While many of our clients are in Brighton , Chichester , and Crawley , we support sole traders throughout the UK via secure cloud accounting systems.

Running a small business can be one of the most rewarding things you’ll ever do — but managing the finances isn’t always straightforward. Between handling invoices, tracking expenses, and staying compliant with HMRC, it’s easy for even the most organised entrepreneur to make costly errors. At Hayson Accounting , we work with business owners across West Sussex — from Brighton to Chichester — and we see the same financial challenges appear time and time again. Whether you’re a start-up or an established company, avoiding these common mistakes can help you save money, reduce stress, and build a more sustainable business. 1. Mixing Personal and Business Finances One of the biggest mistakes new business owners make is using the same bank account for personal and business transactions. Not only does this create confusion at tax time, but it can also make it harder to understand your true profit and cash flow. The fix: Open a dedicated business bank account from day one. Use accounting software (like Xero or QuickBooks) to automatically track income and expenses. Set a clear system for transferring personal drawings or dividends. By separating your finances early, you’ll save hours of cleanup work — and your accountant will thank you later. 2. Not Budgeting for Taxes Many small businesses, especially those that are new or fast-growing, underestimate their tax bills. When HMRC deadlines come around, they’re left scrambling for funds or facing penalties. The fix: Set aside around 20–30% of your profits for tax. Use a separate “tax savings” account so the money is ready when needed. Review your tax strategy regularly with your accountant — especially if your income fluctuates seasonally (common for coastal businesses in places like Worthing or Littlehampton ). Planning ahead turns tax time from a panic into a predictable process. 3. Ignoring Bookkeeping Until Year-End Putting bookkeeping off until tax season is one of the fastest ways to lose control of your finances. Outdated records mean you can’t see where your money is going — and you risk missing legitimate deductions. The fix: Record your income and expenses weekly, not yearly. Use cloud accounting software that connects directly to your bank. Consider outsourcing to a local bookkeeping service — it’s often more affordable than hiring in-house. Regular bookkeeping gives you the insight you need to make smarter business decisions. 4. Missing Out on Allowable Expenses From mileage and subscriptions to home office costs, small businesses often miss tax-deductible expenses simply because they don’t know what qualifies. The fix: Keep digital copies of all receipts and invoices. Use an app to automatically categorise transactions. Ask your accountant to review your expense list each quarter — they’ll spot savings opportunities you might not realise you have. Many West Sussex clients we work with save hundreds each year simply by tightening up their expense tracking. 5. Trying to Do Everything Alone When you’re growing a business, it’s tempting to handle every task yourself — including the accounts. But as your company scales, so does the complexity of your finances. Trying to juggle everything can lead to mistakes and missed opportunities for savings. The fix: Work with an accountant who understands your business structure and goals. Schedule quarterly reviews instead of only meeting at year-end. Use your accountant as a financial partner — not just a tax preparer. At Hayson Accounting , we often help clients uncover cash-flow gaps, claim underused allowances, and implement better systems simply by looking at their numbers more strategically. Final Thoughts Getting your finances right isn’t just about compliance — it’s about building a stable foundation for growth. By avoiding these five mistakes, you’ll have clearer visibility, stronger cash flow, and more confidence in every business decision you make. Whether you’re a small business in West Sussex or anywhere in the UK, Hayson Accounting is here to simplify your finances and help your business thrive. FAQs  1. What accounting software is best for small businesses? We recommend Xero or QuickBooks — both integrate easily with your bank and make bookkeeping effortless. 2. When should I hire an accountant? Ideally, as soon as you register your business. The earlier you get professional advice, the easier it is to stay compliant and organised. 3. Can Hayson Accounting work with clients outside West Sussex? Absolutely. While we’re based in West Sussex , our cloud systems allow us to support clients throughout the UK.