Best Practices for Sole Traders
These tips help you get the most out of Aarvo as a UK sole trader - whether you are a standard sole trader, landlord, or CIS subcontractor.
Track your mileage automatically
If you drive for business, download the Aarvo mobile app and enable location services. Set permissions to "Always Allow" and Aarvo will automatically detect and log your trips in the background.
When you open the app, swipe right on a trip to mark it as business, or left to mark it as personal. Business trips are calculated at HMRC's approved mileage rates and added to your deductible expenses automatically.
Handle mixed-use bank accounts
If your bank account is used for both business and personal spending, make sure to categorise each transaction correctly. Business transactions go through to reconciliation and appear in your returns. Personal transactions are excluded from all tax calculations and reports.
Personal transactions are only visible to you and anyone you give access to - they are never shared with your accountant or included in filings.
Capture receipts as you go
Whenever you get a receipt, open the Aarvo app and take a photo straight away. The receipt is uploaded, the data is extracted, and it is matched to the corresponding bank transaction automatically. Your paperwork is done in seconds.
If you prefer to batch it, you can store your receipts and upload them in bulk later - drag and drop on desktop, or multi-select on mobile. You can also connect your email to have invoices and receipts pulled in automatically. See Connectors for more.
Keep reconciliation current
Your tax figures are only as accurate as your reconciled data. Unreconciled transactions are not included in reports or returns. Try to reconcile weekly rather than leaving it all to year-end - it takes minutes when done regularly, hours when done in bulk.