Operating as Self-Employed or as a ‘Sole Trader’ can be preferable for small businesses where the costs and added complexity of operating as a Limited Company outweigh any potential tax savings. There are also benefits if you are setting up a business whilst still in employment and expect to incur losses if the first year of trading, Our service includes discussing with you your business plans, registering you as Self-Employed with HMRC, the completion of your tax return, advising you of your tax liability and the due payment dates (including any payments on account) and any ad hoc advice throughout the year.

In order to prepare your tax return we will also prepare a simple set of trading accounts to calculate your taxable profit in the year Self-Employed expenses include but are not limited to: Accountancy (Think Tax Fees!)
The purchase of stock
Professional subscriptions
Motoring expenses (HMRC authorised mileage allowance can be claimed)
Magazines and books related to your self-employment or industry
Office rent or use of your home as an office
Paper, postage and other office consumables
Telephone calls and internet costs used for business
Wages paid to employees

Expenses that aren’t tax deductible:


  • Client entertaining
  • Clothing or food (although there are some exceptions)
  • National insurance contributions (Class 2 & 4)
  • Wages paid to yourself (these are classed as drawings and             are not allowable)
  • Travel between home and workplace


At Think Tax we are proud to promote and support new businesses and entrepreneurs. We are business partners with the government ‘Start Up Loans’ initiative headed by Dragons Den entrepreneur James Caan and have experience in dealing with hundreds of new start-up businesses.

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