Running your business as a Self Employed Individual is a great way to start your freelance work or self-employment because it involves less administration than Limited Companies. If you have decided to set up your business as a Sole Trader or Self Employed Individual – we offer a complete solution to ensure that whatever requirements are mandatory for a Sole Trader to adhere to – are met.

All Sole Traders or Self Employed Individuals must register for:

  •  Register for Self Assessment
  •  Prepare Year End Accounts which are used as a basis to assess your tax liability (ie. calculate your profits)
  •  Pay National National Insurance Class 2 (if your profits are £5,965 or more a year) and 4 (if your profits are £8,060 or more a year)
  •  Pay Income Tax (assessed through your Self Assessment Tax Return)

Self Employment Guides

Find more Guides and Tools for Self Employed Individuals in our Business Help Center such as Tax Calculator, Downloads, Templates and Frequently Asked Questions. 

Responsibilities for Self Employed

If you are considering becoming self employed or have recently become self employed here are the main considerations you need to take into account.

Registering as Self Employed

You need to let HMRC know that you are trading before the 31st of October. Within a few weeks of registering, you will receive a Unique Tax Reference number or UTR. All our packages for Self Employed including self employment registration assistance.

Submit an Annual Self Assessment

Filing Online If you submit your return online it needs to be filed online by midnight 31 January. If you want HMRC to calculate your liability on your behalf, you need to submit your information to them by 30 December.  Paper Filings on SA100 need to reach HMRC by the 31st of October (before payment is due)

Calculate and Pay Taxes

31 January Payments of income tax need to be made by 31 January. This is a balancing payment based on your previous year’s tax liability. 31 July A first payment on Account needs to be made for your most recent tax liability. Some individuals choose to pay more frequently through the year to spread the cost of their tax bill using budget payment plans, offered by HMRC.

Maintaining Business Records

Being accountable for taxes places a burden on you to ensure that your financial business records are up to date, accurate and traceable.

Calculate and Pay National Insurance

Your National Insurance payments will be made along with your income tax payments, so the same deadline applies (31 January) unless you use HMRC’s budget payment plan.
You are liable for:
Class 2 if your profits are £5,965 or more a year AND
Class 4 if your profits are £8,060 or more a year

Other considerations

VAT If your taxable turnover exceeds £85000, you must register for VAT. Registering as an Employer If you hire and pay employees you must register as an employer and comply with statutory Payroll Requirements

We are Here to Help You

Get in touch with us today to learn more about how we can help you with your Self Assessment Tax Returns, Annual Accounts, Bookkeeping and more.

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