Online accounting software for Sole Traders.
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Smart Pricing , Smarter Accounting
Our subscriptions make your accounting simple with our easy-to-use software and the full support of our experts and accountants.
Affordable pay-monthly plans
Pricing plan
We prioritize simplicity, offering the most user-friendly accounting platform backed by real experts at your fingertips — all in one place.
Supporting Sole Traders Since 2017
With years of experience, we truly are the experts you can trust.
Qualified Accountants You Can Rely On
Our Certified Accountant and AAT-certified professionals adhere to the highest standards of ethics, regulations, and professionalism.
Save Time and Let Us Handle Filing
We simplify the process by gathering key details, preparing the required documents for HMRC, and filing on your behalf — saving you time and money.
Sole Trader Pro
Starting Out-
Self Assessment
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Unlimited accountancy support
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HMRC registration
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Dedicated client management
Who we can help
Self employed Freelancers Contractors Investors Digital Nomads Tradespeople
What is Sole Trader
Being a Sole Trader is the perfect starting point in setting up a business. It is simply the term to describe the running a business as a single operator or with a team, but without any legal framework around the business
Ease of set up
There is a simplistic three-step process to start out as a Sole Trader in the UK.
- Let HMRC know that you are self-employed
- Register for Self Assessment as a Sole Trader
- Pick a business name
Then you are effectively free to start trading immediately, and there is no need to register with Companies House.
Fewer costs
You do not need to employ the services of a solicitor nor company formation agent. If you choose to use an accountant, their costs can also be cheaper as there are far fewer statutory filings and reporting deadlines. You also will not have to pay a registration fee to Companies House.
Less administration
As a Sole Trader you have to keep accurate records of sales and expenses. Operating in this manner is simple because you are only submitting a Self Assessment (and maybe a VAT return).
More privacy
You are protected by HMRC’s taxpayer confidentiality rules as a Sole Trader. With your details kept private, your rivals will have less information about you that makes it more difficult for them to size you up and compete.
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Frequently asked questions
Explore our FAQs for quick answers to your questions
Can I claim an accountancy expenses invoice as a Sole Trader?
You can claim expenses for your businesses accountancy fees, providing the accountant's time is being spent working on your sole trader accounts and not on personal items, such as the production of your annual Self Assessment.
Do I need a business account as a Sole Trader?
As a sole trader, all of your business profit is taxable to you personally, and legally there is no difference between you and your business. But unless you want to pay more tax than necessary, you’ll usually want to claim sole trader business expenses when it comes to submitting your annual Self Assessment tax return. You need to be able to prove your business expenses are allowable. Having your business and personal expenses in the same bank account can cause all sorts of headaches and means getting your accounts ready takes longer than necessary.With secure Open Banking connections, you can link your business bank account directly to your Crunch account and import all of your transactions in one simple click. From there, reconciling your bank accounts becomes a simple job!
Do Sole Trader accounts have to be audited?
It’s unlikely your sole trade business will require an audit unless you begin reporting turnover of millions of pounds. In such cases, you’d need an accountant to guide you through any audit requirements.
Do Sole Traders need an accountant?
As a sole trader, there’s no law that requires you to have an accountant, but an accountant can help you stay on top of your business finances, manage your legal obligations as a small business owner, and help with your statutory filings and tax returns.An accountant is especially helpful where your sole trade business is starting out and needs assistance with areas such as VAT, CIS, and employing others.
How am I taxed on my Sole Trader accounts?
As a sole trader, you pay yourself based on personal drawings from the business, and you pay Income Tax and National Insurance Contributions based on the profits your business makes.That’s why it’s important to keep a record of any drawings you take from the business to pay yourself. This helps you to keep on top of your accounts and helps when calculating your profits, which you eventually pay tax on. You’ll also need to put some money aside to pay your personal tax bill when you submit your annual Self Assessment.
How do I file taxes as a Sole Trader?
Sole trader taxes need to be filed with HMRC before their relevant due dates. You’ll need to start by registering as a sole trader with HMRC, and registering for tax returns such as Self Assessment. As a Crunch client, our team of Chartered Certified accountants can file your tax returns on your behalf. If you don’t have an accountant, though, you’ll need to file your returns yourself.
How do I set up a Sole Trader bank account?
Many major banks don’t give you the option to open an account for your small business online, but usually, you’ll be able to start your application on the bank’s website, prior to meeting a representative in person or over the phone.Some banks will allow you to walk into the branch and make a same-day appointment, but of course, this cannot always be guaranteed.Crunch is also partnered with a number of trusted banks, including Tide, Metro, Barclays, and Revolut. You can even enjoy special offers and discounts when you open a business account through one of these providers as a Crunch client!
How much is an accountant for a Sole Trader?
At Crunch, our paid accountancy package for sole traders is available for just £26.50+VAT a month! As a Crunch client, you’ll get access to a team of Chartered Certified accountants and expert client managers, available whenever you need them to help your business thrive.
