Bookkeeping for Sole Traders and Freelancers

As a sole trader or freelancer, you wear a lot of hats—client work, marketing, admin, and, oh yeah, keeping track of your finances. The good news? Bookkeeping for sole traders is simpler than it is for limited companies. The bad news? HMRC still expects you to keep proper records, and missing expenses means paying more tax than you need to.

We handle bookkeeping specifically for sole traders and freelancers: track your income, categorise your expenses, claim everything you're entitled to, and get you Self Assessment-ready. Whether you're a freelance designer in Maidstone, a consultant in Canterbury, a contractor in Medway navigating IR35, or a tradesperson running your own business, we'll keep your books simple, compliant, and tax-optimised. No complex accounting jargon, no unnecessary overhead—just practical bookkeeping that saves you time and tax.

What this helps you do (fast)

• Claim every allowable expense — We know what sole traders can claim (home office, vehicle, equipment, training, professional fees) and help you maximise your tax deductions
• Use simplified expenses where it makes sense — If you're eligible for flat-rate expenses (vehicle, home office), we'll calculate whether simplified or actual costs give you the better tax result
• Stay compliant with HMRC deadlines — Your records are always current, so filing Self Assessment by 31 January is stress-free
• Save time on admin — Focus on your clients while we handle receipts, categorisation, and reconciliation
• Get Self Assessment-ready — When it's time to file, your books are already sorted; no last-minute scrambling
• Understand your numbers — See where your money is going, spot trends, and make better business decisions

How it works

Step-by-step process for sole traders:

1. Discovery call — We review your business: type of work, typical income patterns, main expenses, whether you work from home, if you use a vehicle for business, and your current record-keeping setup (spreadsheets, apps, shoebox full of receipts, or nothing yet).
2. Simplified setup — Unlike limited companies, sole trader bookkeeping can be simpler. We set up a system that matches how you actually work: cloud accounting (Xero, QuickBooks) if you want automation, or a simple spreadsheet template if you prefer something basic. We'll also assess whether you're eligible for simplified expenses.
3. Monthly bookkeeping — We track your income (invoices, cash sales, bank transfers) and expenses (receipts, invoices, bank payments). For sole traders, common expenses include: home office costs, vehicle/mileage, equipment, software subscriptions, professional fees, training, marketing, phone/internet (business proportion), and more. We'll help you claim everything you're entitled to.
4. Simplified expenses calculation — If you're eligible, we'll calculate whether simplified expenses or actual costs give you the better result:
   • Vehicle: £0.45/mile for first 10,000 miles, £0.25/mile after (simplified) vs actual costs
   • Home office: £10/week or £18/week (simplified) vs actual costs based on room usage
   • Living at business premises: Flat rates available for retail/hospitality businesses
5. Self Assessment prep — Throughout the year, we keep your records current. When it's time to file (by 31 January), we provide you with a summary of income and expenses ready for Self Assessment. We can also handle the filing for you if you prefer.

We work with whatever system suits you: cloud accounting (Xero, QuickBooks) for automation, simple spreadsheets if you prefer, or even starting from scratch if you've been winging it. The key is keeping it simple—sole trader bookkeeping shouldn't be complicated.

Costs & timelines (no surprises)

Pricing factors:

• Transaction volume — A freelancer with 20 transactions/month costs less than one with 200+/month
• Record organisation — If you've got receipts organised, it's faster. If we're working from bank statements and memory, it takes longer
• Expense complexity — Simple expenses (home office, vehicle, basic supplies) cost less than complex cases (multiple income streams, complex expense structures, simplified expenses calculations)
• Software choice — Cloud accounting (Xero, QuickBooks) setup included; simple spreadsheet template is free but less automated

Commonly reported ranges by local providers:

• Monthly bookkeeping for sole traders: £80–£250/month depending on transaction volume and complexity
• Simplified setup (one-off): £150–£300 (includes Chart of Accounts setup, simplified expenses assessment, initial month's work)
• Self Assessment preparation: £100–£300 (separate service, or included if you're on monthly bookkeeping)

Why sole trader bookkeeping costs less than limited company:

• Simpler structure (no payroll complexity, fewer compliance requirements)
• Fewer transactions typically (many sole traders have simpler income/expense patterns)
• Less complex reporting (no statutory accounts, simpler tax returns)

Timeline: Most setups complete within 3–5 working days (faster than limited companies because it's simpler). Once we're set up, monthly bookkeeping typically takes 1–2 days from when we receive your records. If you're behind on bookkeeping, catch-up typically takes 1–2 weeks for a tax year's worth of records.

No hidden fees. All prices exclude VAT. We offer monthly payment plans and can adjust if your income/expense patterns change significantly.

Kent (UK) focus

We work with sole traders and freelancers across Kent: freelance designers and consultants in Maidstone, contractors in Medway navigating IR35, tradespeople and builders across Kent, online sellers in Canterbury, and professional services providers throughout the region.

Kent sole traders face the same HMRC deadlines as everyone else—31 January for Self Assessment, quarterly VAT returns if you're VAT-registered. The difference is that when your bookkeeping is simple and current, these deadlines aren't scary. You're not frantically trying to remember what that £47 payment to "Office Supplies Ltd" was for 10 months ago—it's already categorised and explained in last month's report.

Common Kent sole trader scenarios:

• Freelancers — Designers, consultants, copywriters working from home, claiming home office expenses
• Contractors — IT contractors, project managers navigating IR35, tracking income and expenses while determining status
• Tradespeople — Plumbers, electricians, builders using vehicles for business, claiming vehicle/mileage expenses
• Online sellers — E-commerce sole traders tracking sales across multiple platforms, managing expenses and inventory
• Professional services — Accountants, lawyers, coaches running their own practice, claiming professional fees and training

Simplified expenses can be especially valuable for Kent sole traders:

• Home office: If you work from home, simplified expenses (£10/week or £18/week) might be simpler than calculating actual costs
• Vehicle: If you use your car for business (tradespeople, consultants visiting clients), simplified mileage rates are often easier than tracking actual vehicle costs
• Retail/hospitality: If you run a small shop or cafe and live on the premises, flat-rate expenses are available

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand the local business landscape. Freelancers in Maidstone, contractors in Medway, tradespeople across Kent—we've seen it all, and we know what sole trader bookkeeping looks like for each.

FAQs