Finding the right accountant for medical and aesthetic sole traders
Choosing the right accountant is the first and crucial step in ensuring your financial affairs are in order. Your accountant should have experience working with sole traders in the medical and aesthetic industries. They should understand the unique challenges and opportunities that these professions present. As specialist accountants for your industry, we can offer tailored advice that goes beyond general accountancy services.
Registering your business with HMRC
One of the initial steps for any sole trader is registering with HMRC (His Majesty’s Revenue and Customs). Timing is key here. You must register by 5th October in your business’s second tax year as a sole trader. As your accountant, we can guide you through this process, ensuring that you meet the deadline and avoid any unnecessary penalties.
Obtaining your UTR number
Your Unique Taxpayer Reference (UTR) number is your personal identifier with HMRC. It’s essential for filing tax returns and conducting other tax-related activities. As your accountant we can assist you in obtaining your UTR number, making the administrative process smoother.
Opening a business/separate bank account
Separating your personal and business finances is a fundamental practice for any sole trader. Our team of expert accountants can advise you on the best approach to open a business bank account, making it easier to manage your income, expenses and tax payments.
Record keeping – what to keep and how
Accurate record-keeping is a legal requirement and as your accountant, we can provide guidance on which documents you need to retain and how to maintain them efficiently. We can also advise and recommend using tools like spreadsheets or accounting software like Xero to streamline this process.
Preparing for Making Tax Digital (MTD)
The Making Tax Digital (MTD) initiative by HMRC aims to digitise tax record-keeping and submission. We can help you prepare your business for MTD compliance, ensuring a smooth transition when the time comes. Then, when your company grows, you will already be accustomed to keeping digital records.
Understanding tax deductions and claiming expenses
AF Tax Solutions can also provide insights into which expenses are tax-deductible in the aesthetics and private medical practice industry. This specialist knowledge can help you maximise your tax efficiency by claiming legitimate deductions, ultimately reducing your tax liability.
Setting aside tax money
Tax planning is a critical aspect of financial management. We can advise you on how much to set aside for taxes and when to make these payments. For higher tax bracket earners, setting aside 40% is typically recommended, while 20% or even 30% may be suitable for others. As your accountant, we will be able to advise you on the amount you need to set aside to prevent any shocks further down the road, especially when your first tax bill is due as you will be required to pay some tax on account for the coming financial year.
Education on running a business from an accountant perspective
We are not just number crunchers; we can also be a valuable source of business advice. We can help you understand the financial aspects of running a business, such as budgeting, forecasting and cash flow management.
Timing of tax self-assessment submission
The earlier you submit your tax return, the better. Generally, HMRC can only raise an enquiry within 12 months of the submission date, not the filing date (31st January). As your accountant, we can help you meet deadlines and avoid last-minute rushes and unwanted fines.
Tax advice to maximise expenses
Beyond general tax compliance, we can offer strategic tax advice to help you legally minimise your tax liability. This might include structuring your business in a tax-efficient manner or exploring tax credits and incentives.
Knowing when to register for VAT
For many businesses, there comes a point when they have to register for Value Added Tax (VAT). We can monitor your business’s turnover and inform you when you reach (or are close to reaching) the £85,000 threshold for VAT registration, ensuring you comply with UK tax laws.
In conclusion, having a knowledgeable accountancy firm behind you such as AF Tax Solutions that specialises in working with medical and aesthetic sole traders is an invaluable asset. We can help you navigate the complex world of taxation, financial management and compliance, allowing you to focus on what you do best—providing excellent services in the medical and aesthetic fields. With our guidance, you can ensure your financial health, minimise tax liabilities and make informed decisions to drive your business forward.
Don’t underestimate the impact a skilled accountant can have on your professional journey!
Call our friendly team today to ensure your company is compliant from day one.