This is the simplest way of trading with only a few formalities required, as follows:
- HMRC must be informed. You can register as self employed by telephone on 08459 15 45 15 or by completing form CWF1 and submitting by post.
- Once you have registered you will be required to pay class 2 national insurance contributions.
- You are required to keep business records in order to calculate profits each year and they will form the basis of how you pay your tax and class 4 national insurance. Any profits generated in this medium are taxable.
- An individual is required to notify HMRC of their self employment within three months of commencing otherwise will be liable to a £100 penalty.
Sole traders have unlimited liability and responsible for business debts
Contact us today for free consultation
Telephone 0207 183 1082