Setting up as a self-employed is the simplest and quickest way to start a one-person business. There is not much paperwork to do.
Record keeping and accounting is straightforward, and there are benefits of being your own boss.
As a sole trader you will have to pay income tax on any profit that your business generates. You must fill in a self-assessment tax return each year, detailing your income and expenses.
You will have to make flat-rate Class 2 National Insurance Contributions (NICs) throughout the year – £2.75 a week for 2014/15. If your annual profits are over a certain amount – £7,956 for 2014/15 – you will also have to pay Class 4 NICs.
You pay these along with your income tax – the amount you have to pay is calculated from your self-assessment tax return.
Personal allowance for year 2014/2015 is £10,000.
Please contact us on 0207 328 8338 for a friendly and informal discussion of your requirements.