020 7328 8338

Monday to Friday: 10:00am to 6:00pm | Saturday: By Appointment Only

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Becoming Self Employed

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.