To be self-employed (UK) means that you work for yourself. You don’t have a single employer but work for multiple clients, often at any one time. The money that you earn is untaxed and you’re responsible for filing a Self Assessment tax return to pay the tax you owe HMRC.
When you start working for yourself, you can register your business as one of two things:
There are benefits to both, but a sole trader is the simpler of the two. It’s a good choice if you’re just starting out and is also better suited if you’re a company of one. You are not permanently tied to either and can switch from one to the other if needed. If you’re planning to hire a team, however, you’ll have to register with Companies House and set up a limited company instead.
Of course! We advise that you start a comprehensive spreadsheet to keep track of your taxable income and relevant expenses throughout the year in order to make your tax return more straightforward. This can be done on an Excel spreadsheet or Google sheet to keep things simple! Contact our team for more advice today!
There’s a lot to navigate with your accounts, so let our team help you get set up! Our experts are well versed in Self Assessments, Capital Gains Tax and accounting, so contact us today.