register as a sole trader

Register as a sole trader

What is a sole trader? It simply means being self-employed.

Being a sole trader business involves some personal financial risk. Once you decide to register as a sole trader you have responsibility to pay your debts if your business fails. If you're thinking of starting up a low-cost business (ie one that is unlikely by its nature to build up big debts), you probably needn't worry too much.

However, if you're likely to build up significant business debts, it might be more advisable to have the personal financial protection offered by forming a limited company (ie 'incorporation').This may be a preferable option to register as a sole trader.

You must also ensure that each year you submit a self employed tax return or alternatively a CIS tax return. This is essential as it could lead to a self employed tax rebate or a CIS tax rebate.

To get started? Simply click CLAIM NOW.

register as a sole trader

Advantages of becoming a sole trader

Setting up and running a limited company requires slightly more administrative effort than being a sole trader, plus you (or a formation agent) must register your new company at Companies House. Setting up a sole trader is quick, easy and involves no cost, while preparing sole trader accounts can be simpler. Sole traders can employ people and become a limited company ('incorporate') later on, should they wish.

Although anyone can register as a sole trader, you might need a licence or permit from your local authority for the type of business you plan to set up. Seek advice if you're unsure.

To get started? Simply click CLAIM NOW.

register as a sole trader

Becoming a sole trader

You must register as a sole trader/self employed business with HM Revenue & Customs (HMRC) as soon as possible – otherwise you could be fined up to 100% of the tax due in addition to the amount of tax unpaid. This is true even if you are only running your sole trader business on a part-time or casual basis.

Many entrepreneurs start their business off on a part-time basis - to test the water or while the business grows sufficiently to generate enough income to support themselves and their families. Some continue working in an employed capacity during these early days so that they have a salary to fall back on. In these cases, it is still necessary to register as a sole trader with HMRC (HMRC) if your employment status indicates that you are self employed for some or all of your work.

The easiest way to register as a sole trader is to use the HMRC Online Service or to call the HMRC 'Newly Self-Employed Helpline' on 0300 200 3504. You will need to have: your name; date of birth; address; telephone number; National Insurance number; start date; name and type of business; and whether you're a sole trader or working with a partner. The process is quick and easy if you have the information to hand.

Alternatively, download and complete the HMRC form 'Becoming self-employed and registering for National Insurance contributions and/or tax'. (HMRC) It will then need to be sent to the National Insurance Contributions Office.

Use the HMRC e-learning tutorial 'Starting your own business' to help you get to grips with different aspects of the tax system, at your own pace.

To get started? Simply click CLAIM NOW.

register as a sole trader

Sole trader tax and NI

Once completed the register as a sole trader process, as a sole trader business, you pay income tax on any business profits. You (or your accountant) must fill in a self employed tax return or a CIS tax return each year, detailing your income and expenses. We, as an agency provide this service in addition to our package of obtaining for our client the appropriate self employed tax rebate or a CIS tax rebate.

You'll also have to make flat-rate Class 2 National Insurance contributions (NICs) of £2.80 per week. Class 2 NICs are now collected at the same time as your tax via self assessment.

If your annual profits exceed £8,060, you'll also have to pay Class 4 NICs (9% on profits up to £42,385; 11% on annual profits above this figure (2015-16). You pay this with your income tax and the figure is calculated from your self-assessment tax return. You must keep detailed financial records for your business, as well as proof of any expenses (eg receipts, invoices, utility bills, etc). Both will be invaluable when it's time to fill in your tax returns each year.

If, as a sole trader business, you employ people, you must collect income tax and NICs from them and pay these to HMRC. You'll need to operate a PAYE (Pay As You Earn) payroll scheme, too. If you expect to turn over more than £82,000 (2015-16) a year, you must register for VAT, charge it to your customers and pay it to HMRC. If you are VAT-registered, you can reclaim the VAT you pay to your suppliers.

To get started? Simply click CLAIM NOW.

register as a sole trader

Very simple. If you have only recently gone through the process to register as a sole trader, or indeed if you have been registered for some time, our service is set up so that we can look after all of your affairs for you. By using our service you can relax in the knowledge that your main focus can then be entirely driven towards your work, taking care of business, and hopefully building up your work/ business profile. All of the technical tax related matters are done for you.

Each and every year we, as your tax agents, will compile and create your self employed tax return or your CIS tax return. And as an organisation that has at it's heart tax rebates for our clients, we will leave no potential stone unturned in our analysis of your situation and circumstances that could potentially lead to a self employed tax rebate or a CIS tax rebate.

All you need to do to register with us as a client is click on one of the claim now links on this page, fill out the short online form and then press send. It is as simple as that. From there we will register you as a client and from that point forward we will offer you full twelve month support with your very own appointed tax agent at an extremely low cost which in the vast majority of cases does not involve our clients actually paying us a penny of their own money. We simply deduct our fees from any resulting rebate. All of our work for you is initially done first with no payments made from you.If you need help initially to register as a sole trader however, simply follow our link to HMRC or if you prefer, just get in touch with us and we can guide you.

Take a look at our relevant pages for more info on our charges and specific services.

To get started? Simply click CLAIM NOW.


Self Employed Tax Rebate.

CIS tax rebate.

CIS tax return.

Self Employed Tax Return.


© 2021 Self Employed Tax Back
claim now