Working for yourself means doing the job, finding the customers and keeping HMRC happy, all at once. As an accountant for sole traders in Uxbridge, Ken Accounting takes the tax side off your hands, so you can get on with your work. We have looked after self-employed people across West London since 2007, on a fixed fee agreed before we start.
Tax returns and allowable expenses
As a sole trader, you pay income tax and National Insurance on your profits through Self Assessment. Your tax return must be filed online, and the tax paid, by 31 January after the end of the tax year.
We prepare and file your self assessment tax return for you, well before the deadline. We also tell you what you owe in good time, including any payments on account, so there are no surprises in January.
A big part of keeping your tax bill fair is claiming the right expenses. Allowable expenses are costs you incur wholly and exclusively for your business, and they reduce the profit you pay tax on.
Depending on your work, these might include:
- Materials, stock and tools
- Travel for work, but not your normal commute
- Phone, internet and software used for the business
- Insurance, professional subscriptions and bank charges
- A share of household costs if you work from home
We go through your costs with you and make sure you claim what you are entitled to, and nothing you are not. If you keep your records in Xero or another app, we can work directly from that.
MTD quarterly updates
Making Tax Digital (MTD) for Income Tax is changing how sole traders report to HMRC. Since 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC using compatible software.
The threshold falls to £30,000 from April 2027 and to £20,000 from April 2028. Qualifying income is your total income from self-employment and property, before expenses, based on the tax return for an earlier year.
You still need to submit a tax return at the end of the year, so MTD adds to the work rather than replacing it. We can:
- Check whether and when MTD applies to you
- Set up compatible software, such as Xero
- Keep your digital records in order
- Send your quarterly updates and your year-end return
Read more on our Making Tax Digital page, or ask us for an MTD check during your free consultation.
When to become a limited company
As your profits grow, you may wonder whether you would be better off trading through a limited company. There is no single figure at which it always makes sense.
The answer depends on your profits, how much you need to take out of the business, your other income and your plans. A limited company can be more tax-efficient for some people, but it also brings more paperwork, public filings at Companies House and director responsibilities.
We will run the numbers for your situation and explain the pros and cons plainly. If incorporating is right for you, our company formation service handles the set-up, and our page for limited companies and contractors explains what changes afterwards.
Construction workers and CIS
If you work in construction as a subcontractor, you are likely to come across the Construction Industry Scheme (CIS). Under CIS, contractors take deductions from your payments and pass them to HMRC.
If you are registered for CIS, the contractor must deduct 20% from your payments. If you are not registered, they deduct 30% instead. Some subcontractors can apply for gross payment status, which means no deductions are taken in advance.
CIS deductions count as advance payments towards your tax and National Insurance. You claim them back through your Self Assessment tax return, so it is important your records of deductions are complete.
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We can check your CIS statements against your records, include the deductions correctly on your tax return, and help you understand whether gross payment status might be possible.
What it costs
We agree a fixed fee before we start, after a free first conversation about what you need. Many sole traders prefer to spread the cost with a fixed monthly fee.
The fee depends mainly on:
- How many transactions you have and how your records are kept
- Whether you need us to do your bookkeeping or just the year-end work
- Whether MTD quarterly updates apply to you
- Other income, such as rental property or CIS work
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See our fees page for more on how we price our work.
Frequently asked questions
Do I need an accountant as a sole trader?
You do not have to use one, but many sole traders find it saves them time and makes sure they claim the right expenses. It also helps as MTD brings quarterly updates.
When is my tax return due?
Your online Self Assessment tax return must be filed, and the tax paid, by 31 January after the end of the tax year. We aim to file well before then.
Will MTD affect me?
If your qualifying income from self-employment and property is over £50,000, it already does. Over £30,000, it will from April 2027, and over £20,000 from April 2028.
Can you help if I work in construction?
We can include your CIS deductions on your tax return and check them against your records. Talk to us about what you need during your free consultation.
Should I become a limited company?
It depends on your profits and how much you take out of the business. We will compare both options for your situation before you decide.