Accounting software for self-employed business owners

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.

A limited company is a legal business structure in which the business is a separate entity with a director, employees and/or shareholders. It varies from other legal forms, like sole trader or partnership, This means it has its own structure, business liabilities, set-up, tax liabilities and financial reporting requirements.

You can register as a sole trader or a limited company 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.

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.

As a sole trader, 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.

As a limited company, you’re always liable for Corporation Tax on your profits. On top of that, you may need to pay VAT, deduct Income Tax and National Insurance via payroll software, pay tax on dividends, pay capital gains tax and register for Self Assessment. Let QuickBooks collect all the data you need while a registered accountant helps you make the relevant adjustments, calculations and submissions.

As a sole trader, 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.

As a limited company, you need access to accounting features such as Payroll and financial reporting. You may also want to be able to add additional users to your accounting software so you can collaborate on your books. And while you’re running your business, you’ll want your software to keep track of all the data you need to prepare your tax returns, such as Income Tax and capital gains tax.

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.

If you’re a limited company, you want accounting software that’s simple to use, yet advanced enough to meet your accounting needs. QuickBooks accounting software for small limited companies has all the features of advanced accounting software, but with no added complexity. Discover what it feels like to manage all your business finances, in one single place.

Yes, you can try QuickBooks' online accounting software for free for one month, or benefit from special discounts if you purchase straight away. Start your free trial now or see the latest pricing offers.

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.

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't already have one, search QuickBooks ProAdvisor to find a certified accountant or bookkeeper who’s eager to assist you with using QuickBooks.