Starting up in business as a sole trader is pretty simple.
What you must do
- Register as self employed with HMRC.
- Get a bank account so you can keep your business income and spending separate.
- Keep records of your income and spending (keep all the paperwork, and record it in a spreadsheet)
- Submit an annual tax return each year.
- Pay class 2 and class 4 National Insurance Contributions (NICs).
What you might want or need to do
- Decide on a name for your company (if you don’t want to trade as just your own name)
- Get business cards, headed paper etc printed.
- Think about using an accountant (especially if you’re employing staff who you need to pay PAYE for).
- Register for VAT if your turnover is expected to be over £68,000 (2009-10).
- Get permission or a licence from your local authority for certain types of business.
- Take out any relevant insurance (EG public liability insurance or employer’s liability cover).
I have been reading through your advice & u have answered the questioned I was asking in my previous email. Am I right in thinkin I should start as a sole trader? also, if I am not being paid from the business for the first 6 months or so but im still working part time in a old job how will registering self employed come into it? will I only be self employed when I have given up my other job & start getting paid through my business? Thanks.