Q: Can QuickBooks scale with me as my business grows?

QuickBooks Self Employed is ideal for sole traders who aren't (and aren't likely to be) registered for VAT. If you think you're going to start paying VAT, or may become a limited company, sign up for QuickBooks Online . You can move up from Simple Start to Essentials and then on to QuickBooks Plus as your business and needs grow.

Q: What do I need to keep track of as a sole trader?

You need to keep a record of the following:All sales and incomeAll business expensesVAT records (if you’re registered for VAT)PAYE records (if you employ people)Records about your personal incomeYour grants (if you claimed through the Self-Employment Income Support Scheme)When you submit your tax return, you do not need to send in your records. But, you do need to keep them so you can calculate your profit or loss for your tax return and to show HMRC (if requested). These records must be accurate.This doesn’t have to be daunting. QuickBooks can help you keep a record of it all, reduce mistakes and increase accuracy with our VAT error checker–all in one place. Let us help you do your tax returns with confidence.

Question 1

What is a sole trader?

Accepted Answer

As a sole trader, you’re the only one who runs and owns your business. This means that you’re entitled to keep all the profits it makes after tax has been paid, but you’re also liable for all losses.

Question 2

How do I register as a sole trader?

Accepted Answer

You can register as a sole trader with HMRC online. You’ll need to provide some personal and business information, like your National Insurance Number. When you register as a sole trader, you’ll have access to online services from HMRC. If you’re registered for VAT you can easily connect your HMRC account to QuickBooks to submit your VAT returns online.

Question 3

What type of tax do I need to pay as a sole trader?

Accepted Answer

You’ll need to pay Self Assessment Income Tax and Class 2 National Insurance. You may also need to pay Class 4 National Insurance depending on your income. QuickBooks’ simple sole trader accounting software can automatically work out how much you owe.

Question 4

What are the basic accounting software features I need as a sole trader?

Accepted Answer

You’ll want accounting software that can help with basic tasks like tracking time, sending invoices, managing expenses and submitting your tax returns in line with the most up to date Making Tax Digital regulations.

Question 5

What is the best online accounting software for sole traders?

Accepted Answer

If you’re a sole trader, the best accounting software is one that allows you to manage your finances on the go, from any device. Cloud accounting software like QuickBooks Online allows you to send invoices, track expenses, calculate tax and see how your business is doing in real time - all in one place.

Question 6

Does QuickBooks’ sole trader accounting software come with a free trial?

Accepted Answer

Yes, sole traders can try QuickBooks’ online accounting software for one month absolutely free or benefit from special discounts if you decide to buy now. Start your free trial now or see the latest pricing offers.

Question 7

Can QuickBooks scale with me as my business grows?

Accepted Answer

QuickBooks Self Employed is ideal for sole traders who aren&#x27;t (and aren&#x27;t likely to be) registered for VAT. If you think you&#x27;re going to start paying VAT, or may become a limited company, sign up for QuickBooks Online . You can move up from Simple Start to Essentials and then on to QuickBooks Plus as your business and needs grow.

Question 8

Can I do my own accounting as a sole trader?

Accepted Answer

You’re not required to use an accountant–you can simply file your own taxes. If you’re diligent about keeping track of your finances and invoices, filing your taxes on your own doesn’t have to be daunting – especially with the help of accounting software like QuickBooks. QuickBooks can help you stay on top of your books as well as send invoices, track expenses, prepare self assessment, calculate VAT and see how your business is doing in real time–all in one place.

Question 9

What do I need to keep track of as a sole trader?

Accepted Answer

You need to keep a record of the following:

All sales and income
All business expenses
VAT records (if you’re registered for VAT)
PAYE records (if you employ people)
Records about your personal income
Your grants (if you claimed through the Self-Employment Income Support Scheme)

When you submit your tax return, you do not need to send in your records. But, you do need to keep them so you can calculate your profit or loss for your tax return and to show HMRC (if requested). These records must be accurate.

This doesn’t have to be daunting. QuickBooks can help you keep a record of it all, reduce mistakes and increase accuracy with our VAT error checker–all in one place. Let us help you do your tax returns with confidence.

Question 10

Would having an accountant be helpful for me as a sole trader?

Accepted Answer

An accountant or bookkeeper can help support the success of your business so we’d advise working with one if you can. If you don&#x27;t already have one, search QuickBooks ProAdvisor to find a certified accountant or bookkeeper who’s eager to assist you with using QuickBooks.

Question 11

What is MTD for Income Tax and Self Assessment (ITSA)?

Accepted Answer

The government&#x27;s Making Tax Digital (MTD) initiative is aiming to modernise and shift the tax system online. From April, 2026, both self-employed business owners and landlords with an annual qualifying income of £50,000, or over, and £30,000 or over from April 2027, will first be impacted by MTD for Income Tax Self Assessment (ITSA). Income from all relevant sources will count towards your qualifying income.

Question 12

How will QuickBooks help me through MTD for ITSA?

Accepted Answer

QuickBooks will be able to help you comply with all your ITSA obligations. Whether you need to send your quarterly updates, finalise your annual income through the End of Period Statement or submit your Final Self Assessment Declaration, you’ll be able to do it all with the help of QuickBooks.

We plan to make our ITSA available in all entry level products*. This means that, whether you’re a QuickBooks Self Employed user, or a QuickBooks Online Simple Start, our ITSA functionality will soon be available to you.

*This information is intended to outline our product direction, but represents no obligation and should not be relied on in making purchase decisions. Intuit reserves the right to discontinue or change features at any time for any reason in its sole absolute discretion.

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Sole trader questions. Answered.

What is a sole trader?

How do I register as a sole trader?

What type of tax do I need to pay as a sole trader?

What are the basic accounting software features I need as a sole trader?

What is the best online accounting software for sole traders?

Does QuickBooks’ sole trader accounting software come with a free trial?

Can QuickBooks scale with me as my business grows?

Can I do my own accounting as a sole trader?

What do I need to keep track of as a sole trader?

Would having an accountant be helpful for me as a sole trader?

What is MTD for Income Tax and Self Assessment (ITSA)?

How will QuickBooks help me through MTD for ITSA?

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