How To Register A Business Uk Sole Trader

For example if from the definitions above you started trading on 1 january 2017 the latest date you could register self employed would be 5 october 2017.

How to register a business uk sole trader. How much can you earn as a sole trader before paying tax. Compared to any other business registering as a sole trader in the uk is quite easy. When do you need to register as a sole trader. Most businesses register as a sole trader limited company or partnership. There are many benefits of being your own boss including greater control over your work life balance.

Setting out in business on your own might feel daunting but take comfort from the fact that you re in good company there are now almost five million self employed workers in the uk accounting for 15 of the total workforce. Keep records of your business s sales and expenses. You ll need to register for self assessment by 5 october in the second tax year after you started trading. You get to keep any profits you earn after tax of course but you will have to personally take the hit of any losses. Once you have your government gateway account setup then you can complete the sole trader registration form.

Sole traders it s simpler to set up as a sole trader but you re personally responsible for your business s debts. You ll need to provide your name address national insurance number and some details about your business. It typically takes around 10 days to get an activation code for the government gateway account. A sole trader is simply an individual who is self employed and running their own business. The stress free guide to registering as a sole trader.

The process is relatively easy to follow though some questions might arise which requires professional assistance. Before you register your business as a sole trader use the employment status indicator to check if your work qualifies as self employment. Register as a sole trader with hm revenue and customs and legal responsibilities if you run a business as a self employed sole trader. You can also phone hmrc on 0300 200 3500 or print a copy of the online form and send it by post. Pay income tax on your profits and class 2 and class 4 national insurance use hmrc s calculator to help you budget for this.

To set up as a sole trader you need to register for register for self assessment and file a tax return every year. Registering as a sole trader is a great way to start a business quickly and conveniently. Getting sole trader registered is very simple. How to register as a sole trader the easiest way to register is online on the hmrc website. Number if you re moving to the uk to set up a business.