Annual Accounts – Sole Trader
Unlike limited companies, sole traders’ accounts do not have to be prepared in accordance with a prescribed format. Sole traders do not have any statutory requirement to prepare accounts, but they are normally necessary to support the individual’s tax return. They also, of course, enable the sole trader to see how profitable the business has been during the year. HMRC require accounts to be prepared in accordance with approved accounting statndards so accounts need to comply with these.