Sole Trader Accounts for the Self-Employed

Being your own boss is brilliant, but the paperwork that comes with it is rarely anyone’s idea of fun. At BAA Group, we take care of your sole trader accounts from start to finish. We keep your records straight, work out your profit accurately, capture every expense you are entitled to claim, and get you fully ready for your Self Assessment tax return. You get on with running your business, and we make sure the numbers are right.

Led by Ben Brophy ACA, we bring over a decade of experience and a friendly, jargon-free approach. No confusing forms, no late nights wrestling with spreadsheets, and no paying more tax than you need to.

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What Are Sole Trader Accounts?

If you work for yourself as a sole trader, you do not file accounts with Companies House the way a limited company does. Even so, you still need a clear and accurate set of accounts every year. They are what tell you how much profit you actually made, and they form the basis of your Self Assessment tax return.

A good set of sole trader accounts shows:

Your total income for the year
Your allowable business expenses
Your net profit, which is what you are taxed on

Done properly, your accounts are far more than a tax formality. They show you exactly how your business is performing, where your money is going, and where you could be more efficient.

Who We Help

We look after sole trader accounts for all kinds of self-employed people, including:

Freelancers and consultants across every sector
Tradespeople such as builders, electricians, and plumbers
Creatives and content creators earning through their work and platforms
Side hustlers turning a passion into a second income
Established self-employed businesses wanting a more proactive accountant

Whether you are newly self-employed and unsure where to start, or you have been trading for years and want to tidy things up, we make it simple.

What We Do for You

We handle the whole picture so nothing slips through the cracks:

Prepare your annual accounts accurately and on time
Capture every allowable expense, so you do not overpay tax
Set up and run your bookkeeping using cloud software like Xero, QuickBooks, or FreeAgent
Calculate your taxable profit ready for Self Assessment
File your Self Assessment tax return for you, if you would like us to
Advise on tax efficiency, including whether a limited company might suit you as you grow

Allowable Expenses: Keeping More of What You Earn

One of the biggest reasons sole traders overpay tax is missed expenses. As a self-employed person, you can usually claim costs that are wholly and exclusively for your business, which reduces your taxable profit. Depending on what you do, that can include:

Equipment, tools, and software
A proportion of your home costs if you work from home
Travel and mileage for business journeys
Phone, internet, and subscriptions used for work
Professional fees, insurance, and training

We make sure you claim everything you are genuinely entitled to, while keeping you safely on the right side of HMRC’s rules. No guesswork, no risky claims, just a properly optimised set of accounts.

Making Tax Digital Is Coming: Be Ready Early

Big changes are on the way for the self-employed, and getting ahead of them now will save you a real headache later.

From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC under Making Tax Digital for Income Tax. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

In practice, that means the days of a single annual tax return are ending for many self-employed people, replaced by digital record keeping and regular online submissions. We will get you set up on the right cloud software well ahead of time, so when Making Tax Digital applies to you, you are already running smoothly rather than scrambling to catch up.

Why Choose BAA Group for Your Sole Trader Accounts?

Less stress, more clarity. We handle the numbers so you can focus on your work.
Every expense captured. We make sure you keep as much of your earnings as possible.
Always on time. Your accounts and return are ready well before the deadline.
MTD ready. We future-proof your record keeping ahead of the changes.
Jargon-free. We explain everything in plain English.
Genuinely proactive. We advise you year round, not just at tax time.

How It Works

Free consultation. Tell us about your business and how you work.
We set up your records. Cloud software or your existing paperwork, whatever suits you.
We prepare your accounts. Accurate, complete, and reviewed for tax efficiency.
We get you ready for tax. Your profit calculated and your Self Assessment prepared.
We keep you ahead. Reminders, planning, and advice all year round.

Frequently Asked Questions

Do sole traders need to prepare accounts?

You do not file them with Companies House, but you do need an accurate set of accounts to work out your profit and complete your Self Assessment tax return correctly. We prepare these for you.

What is the difference between sole trader accounts and a tax return?

Your accounts work out your profit for the year. Your Self Assessment tax return reports that profit to HMRC and calculates the tax you owe. The two are linked, and we handle both so everything matches up.

Can you help me claim the right expenses?

Yes. Claiming the correct expenses is one of the biggest ways to reduce your tax bill legitimately, and it is something we focus on carefully for every client.

Should I become a limited company instead?

It depends on your profit level and circumstances. As your income grows, a limited company can sometimes be more tax efficient. We are happy to talk it through and advise on what suits you.

Can you take over from my current accountant?

Absolutely. The switch is straightforward, and we handle the handover for you.

Ready to Take the Hassle Out of Your Accounts?

Let’s get your sole trader accounts accurate, your expenses fully claimed, and your Self Assessment sorted, so you keep more of what you earn and lose the paperwork stress.

Get in touch with BAA Group today → Contact Us