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Sole trader

You run the business as the sole owner and have unlimited liability for any debts or legal issues that may arise. It is important to reflect on your personal circumstances and the business risks when considering this option. As you grow it is always possible to change the structure. Mollio will always spend the time to discuss options and changes with you, listening to your requirements and finding the best solution with you. We will offer hands on support at every stage, making sure you are involved and understand every process.

When should you set up as a sole trader?

As soon as you earn more than £1,000 from self-employment in the tax year

How to set up as a sole trader

  • Register with HMRC online - via your own Government Gateway or ask your accountant to help.
  • HMRC will issue a 10-digit Unique Taxpayer Reference (UTR)
  • You will be required to file a tax return every year.

When should You Register?

  • Ideally as soon as you start up but by 5th October, after the end of the tax year in which self-employment commenced. the latest to avoid fines
  • Once registered as self-employed, you will get a letter, usually in April, telling you when you need to complete your first Self-Assessment Form

What are your responsibilities?

  • Keep accurate records of all business sales and expenses
  • File a self-assessment tax return every year
  • Pay Income Tax & Class 2 and Class 4 National Insurance on profits
  • If Income is over £90,000 it is mandatory to register for VAT, however you can voluntarily register if it suits your business.


We provide a broad range of services specifically tailored to aid small businesses with their finances, including

Managed bookkeeping

Accurate bookkeeping is the foundation to business success, without it the information is historic and useless. Mollio can act as your book-keeping department fully or we can train you or your staff to use the software more effectively.

Invoicing software

making use of OCR recognition software for receipts and automated bank feeds there is no need for paperwork to pile up. We provide a service that will review your need and build a stack of Apps that works for your business, using  HubDoc or AutoEntry to facilitate ease of data collection with its simple snap and store system. Snap and store of receipts could result in less tax, as there are less lost receipts.

Tax returns

There is no need to be late in filing Self-Assessment.We file as soon as possible after 5thApril once all information has been obtained. Mollio uses a dedicated client portal for you to upload all documents that are required to complete your tax return.


For clients that have employees or are making that jump it can be a daunting task. Making sure employees are paid accurately and on time is essential to every business whether sole trader or limited company. We take the task in hand and aim to give you peace of mind:

VAT returns

These cannot be done accurately without accurate bookkeeping. We offer this on top of the managed bookkeeping for VAT registered business.

Free advice

Our website provides many up-to-date blogs with hints and tips, keeping you up to date with any changes and giving you valuable accounting information.

Working With Mollio

You can expect a service that is tailored to your needs, that can be flexed and moulded as your business changes. We understand that working hours are no longer 9-5, and as such try to be flexible about appointments. We all run busy businesses and want to maintain a decent work life balance. We will offer early evening slots once or twice a week, and we can cope if young children are about during meetings.

Equally if the weathers good you may find Leesha takes time out to fit a cycle ride in and will then work late in the evening. There will always be good coffee and relaxed conversations to be had and we will always be honest and do what is right.

We're up to speed when it comes to the latest and greatest in cloud accounting software.

Working together we'll set up a baseline suite of streamlining systems to support you and your business:

accounting accreditations

Intuit QuickbooksSageXero


What accounting services do small businesses need?

Small businesses in the UK require various accounting services to manage their finances effectively. Some of the fundamental services that small businesses require include bookkeeping, tax planning and preparation, budgeting, cash flow management, and financial analysis.

Bookkeeping is important to keep track of all business transactions, including income and expenses, accounts payable, and accounts receivable. Tax planning and preparation is necessary to ensure compliance with tax regulations and minimize tax liability. Budgeting is essential for forecasting revenue and expenses, while cash flow management assists in monitoring and managing the inflow and outflow of cash.

Lastly, financial analysis is required to identify opportunities or challenges within the business and make informed decisions about its future. Small businesses can benefit from outsourcing their accounting services to professional accounting firms, which can help optimize financial performance and operations

How much should a small business pay for accounting services?

When considering using Mollio for your accountancy needs we arrange a face to face where we discuss your businesses needs and provide a tailor-made proposal for you to consider which includes the services we will provide for your business and the fee structure

How do I pay for your services?

We tailor make any payment terms as part of our proposal based on your business and requirements. This can change as your business evolves, changes, and grows.

What types of small businesses does Mollio work with?

Mollio works with a variety of businesses in various industries and services. We pride ourselves on getting to know and understand your business and provide the right accounting services to help you grow and be successful.

What are business accounting services?

Business accounting services refer to the professional financial management services provided to businesses. These services may include bookkeeping, tax planning and compliance, financial analysis, payroll management, and other financial reporting services. The aim is to help businesses manage their finances more efficiently, make better financial decisions, and comply with the UK's tax laws and regulations. These services are usually offered by accounting firms and can be customized to fit the specific needs of each individual business

Is there a minimum contract period?

There is no minimum contract period, but we do require 30 days' notice of termination of our services.

What if I need to switch accountants?

If you require to change accountants for any reason, we are happy to provide a 'handover' so that your business is unaffected by the change. There is no reason for the change to be disruptive.

How do I pay tax when setting up as a sole trader?

As a sole trader you will need to pay income tax based on your business profits, along with National Insurance contributions (NICs).

This is done through a process called Self-Assessment which involves submitting a form each year to HM Revenue & Customs (HMRC) to calculate what you owe in tax and then paying the required amount.

Tax falls due on 31st January of each year, with a further 50% payment due on 31st July if the tax due exceeds £1000.

Why our customers love Mollio

As a start-up I was worried about how I would handle all of the accounting aspects of running a business, but Mollio completely takes away the stress of this, with sound advice and a wonderfully efficient service, leaving me to focus on the running of my business.

As start -up business we needed an accountant that would be patient and understanding with our lack of knowledge regarding financial matters. Someone who was willing to provide us with hands on support whilst we got to grips with using our accounting software. Mollio has always been there for us when we have needed any financial advice or business support and they are a constant advocate and promoter of our brand.

Leesha and Mollio have been invaluable to me from day one of setting up. Always available and on hand to answer every type of question. Approachable, experienced and super friendly. We have since launched another business and Leesha involved from Day 1 on that too, she turns the accountancy jargon into understandable accountancy language – thank you Leesha for all your support.