Starting to work for yourself can be a stressful and time consuming, our start-up package and our regular updates mean thet you are always up to date with tax deadline dates.

HMRC correspondence can be quite daunting so we will also act as your appointed agents with the tax office.

Setting up for trade as self-employed/sole trader is the simplest and quickest way to start a one-person business. There are consequences of and requirements for setting up as a sole trader.

An example is making sure you meet your responsibilities for paying your own tax and National Insurance Contributions.

• Not much paperwork to do
• No registration fees to pay
• Flexible working conditions

How we can help!

• We can register you for self employment or partnership
• We can offer this service free of charge provided you appoint us as your accountants and tax advisors
• We will explain fully what is involved in starting in business in the UK
• We can tell you when you have to pay your taxes and how

If you prefer a one-off service we can still assist you in the same way, please contact us and we will be able to process your registration.

Tax matters

As a sole trader you will have to pay income tax on any profits from your business. You must fill in a self-assessment tax return each year, detailing your income and expenses.

Penalties

If you fail to register as self-employed with HM Revenue & Customs (HMRC) within the first three full months of becoming self-employed, you may have to pay a penalty of £100.

National Insurance

You will be solely responsible for paying your own National Insurance contributions (NICs) throughout the year - charged at £2.20 a week for 2007/08 (£2.30 a week for 2008/09). Setting up a monthly direct debit is a good way to ensure you pay in time.

VAT

If your business has - or you expect it to have - a turnover of more than £64,000 a year, you must charge your customers VAT and send it to HMRC.

Employees

Sole traders can take on employees just like any other business. Firstly you need to register as a new employer and you you will need to collect income tax and NICs from your employees and pay these to HMRC.

Keeping records

It is crucial that you keep all your financial records and expenses for your business as you will need to fill in your tax returns at the end of the Financial Tax Year.