You can be self employed as an individual, sole trader or continue to provide services through a personal limited company. Contractors and Locum Professionals who own a company are termed to be self employed by HMRC. All the profits remain with the company and are not subject to self assessment tax unless money is withdrawn as salary or dividends.

In order to become a sole trader as an individual, you must get registered with HMRC and submit personal tax returns on an annual basis. As experienced tax accountants, we can help you with sole trader registration process and can file your self assessment tax returns each year, ensuring that you stay on top of your business and tax compliance.

What Do You Need To Consider If You Are Self-Employed?​

  • If you are self-employed you will be liable personally for any debts run up by your business. Therefore, if your business requires considerable investment this can make being self-employed a risky venture.
  • If you are self-employed you will be obliged to complete and submit a Self Assessment tax return. This can be a complex procedure, however if you choose The Accountancy Solutions we can complete your return on your behalf and file it online to HMRC.
  • If you are self-employed you will usually have to pay the amount of income tax that you owe over the course of the tax year in 2 installments – one in January and one in July, and then you will usually also pay a balancing payment by 31st January each year.
Advice For Self Employed

Anyone who is self-employed is obliged to comply with some regulations. If you plan to become a sole trader or start a business, you must register with HMRC within a month. If you are working as contractor or providing services under limited company you will be register for self assessment as director of the company. Areas we can assist in include, but aren’t limited to:

  • Register with HMRC for Tax and NI within 3 months
  • Set up a business account whenever possible
  • File an annual self-assessment tax return
  • Pay tax on any profits
  • Pay Class 4 NI contributions on profits
  • Register for VAT if necessary
  • Set up a PAYE system for any employees