Financial Accounts & Accounts Preparation for Sole Traders and Partnerships
Whether you’re a Sole Trader, or a Partnership, LSR Accountancy Services will prepare your annual accounts in a timely manner, ready for your self assessment tax return.
Normally, as a sole trader or a partnership you need annual accounts preparing in order to prepare for your self assessment tax return, and maybe to secure external finance.
As they are your accounts, within reason, we can formalise the layout of your annual accounts to show the information you require to manage your business.
Business Tax
In addition to preparing your accounts you also need to prepare a tax computation which effectively converts your accounts prepared under accounting standards to the tax rules. Some of the adjustments are as follows:
Depreciation
Businesses set their own rates of depreciation depending upon the expected life of that type of asset i.e. computers – expected life span is short therefore high depreciation rate. However, HMRC will only allow specific percentages, called Capital allowances, of which there are various types.
Entertaining
For tax purposes these costs are disallowed, however, it is important that these costs are incorporated into your accounts.
Private vehicle usage
As a Sole Trader or Partner it is likely that you will need a vehicle to use in the business. As that vehicle will more than likely have a non-business element, it is important that the costs of running are kept separate from other travelling expenses. Therefore, an adjustment can be made on the tax computation for the private use.
At LSR Accountancy Services we will try to make this process as easy as possible, by having as many meetings as you need to discuss both the accounts and your tax return.
Whether you’re a Sole Trader, or a Partnership, please contact us to find out how we can help you.