As soon as you decide to start working for yourself you should register as self employed with HMRC. If you wish to become a sole trader you can start trading as soon as you have registered as self employed. You do not even have to inform Companies House. Following completion of your self assessment tax return, your liability for income tax and Class 4 NI contributions can be calculated and sole traders also have to pay Class 2 NI contributions.
We recommend that you discuss your choices with us, because although the sole trader route is the most popular way of starting up a business in the UK, it is not the best route for everyone. Sole traders are personally liable for any business debts or losses they make and can be forced into bankruptcy.
How we can help you
Add Value Accountants can help you in the following ways:
- Discuss your choices with you and advise accordingly.
- Register you with HMRC as appropriate.
- Accurate and timely book keeping.
- Preparation of year end accounts.
- Good tax advice to reduce your tax bill.
- Complete your self assessment tax return.
- Calculate your tax liability and NI contributions.
- File your tax return online.
- Discuss with you the amount of tax and NI to be paid and when it is due.