If you have started a business or are thinking about starting one, then you will need to decide on a business structure. You can choose to create a limited company, work as a sole trader or a partnership. Each business structure varies, especially when it comes to accounts and the bookkeeping. Sole trader owners are classed as self-employed, therefore they have their own set of tax rules and regulations to adhere to.
The alternative to setting up a limited company is to become a sole trader or a member of a partnership, for example, if you decide to trade a sole trader you will essentially be classed as ‘self-employed’. In this guide on how to register as a sole trader, you will be made aware of all the relevant taxes, optional taxes you can register for and how to actuallly set up as a sole trader/ sel-employed.
If you decide to become self-employed, either on your own (as a sole trader), or with other people (as a partnership), you will be responsible for working out and paying your tax liabilities to HMRC.
Whether you are self-employed or are running a business on the side, you will have a personal tax account which you should be checking. However, research finds that nearly half of UK workers don’t check their account.
Reader’s question: I am about to start working for several companies as a self-employed transport consultant. Which would be better for me limited company or sole trader?
When operating on a self-employed basis as a sole trader, you are your own boss, which means that you’re legally responsible for the financial affairs of your business, including the maintenance of financial records, daily bookkeeping and retaining the likes of invoices and receipts. As you keep close watch of your income and expenditure to ensure that the business is running smoothly, there are reporting obligations you are required to meet, writes Mark Halstead of Red Flag Alert.
In the latest research carried out by PolicyBee, it was found that small businesses are quite perplexed with Professional Indemnity Insurance and it causes quite the confusion. This confusion and lack of understanding resulted in around 40% of respondents not getting a professional indemnity cover, leaving them exposed.
In a recent study carried out by insurance provider Qdos, it was found that self-employed are exposed to financial risk, as they avoid getting insurance cover. There are numerous reasons for this, from business owners thinking they don’t need it to them still being in the process of considering it.
With Brexit and the uncertainty at No. 10, it’s becoming increasingly hard to predict what upcoming legislation will be enforced and when – leaving businesses, landlords and the self-employed all striving for clarity.
If you are classed as self-employed or have a source of untaxed income, you will be required to complete a Self-Assessment. However, this criteria is vague and many are left confused as to whether they actually need to file the tax return or not.
January 31st has now passed. Most people spent the arrival of February with their tax return submitted well in advance, while others were exhausted after rushing to file it. And a few will have missed the deadline altogether.
When opting for the self-employment route and starting up your own business, the chances are that the tax aspect won’t come naturally. You may be asking yourself some questions: how do I pay my tax without an employer taking it from my wage? Or is there any way I am able to make savings on my tax return?
Mental health issues plague the workplace as working conditions can sometimes lead to stress and anxiety. Although there is continuous progress being made to destigmatise talking about mental health, there is still a lot of work to do. Small businesses need to actively talk about mental health in the workplace, so employees can feel like it’s okay to talk about how they are feeling. Small business owners need to be the leaders and open up about the challenges and stress that comes with being in the workplace.
In the most recent Small Business Index carried out for the third quarter (Q3) of 2018, it was found that small businesses are lacking confidence. The research carried out by the Federation of Small Businesses (FSB) on a quarterly basis has seen the confidence of small business plummet for the third time since the Brexit vote. The confidence of the self-employed has also taken a big hit due to the government unfulfilling its promises.
In this article, we look at another type of business structure – the partnership – which enables two or more self-employed people to set up in business together.
In a recent study conducted by FreeAgent, looking at the work habits of micro business owners and freelancers, it was found that they are creating a new phenomenon called workation. A workation is essentially working whilst being on holiday. This is not the ideal situation, checking work emails and doing admin whilst on holiday. The self-employed are workaholics and seriously need to find the balance between work and life. Holidays are a time to get away, switch off and rejuvenate, constantly working achieves the opposite of that.
In the latest research conducted by the Federation of Small Businesses (FSB), it was found that the self-employed are not very optimistic about the future. The self-employed in the UK are the largest business group, with there being an estimated of 4.8 million sole traders. The FSB are launching a ‘Think Self-Employed’ scheme to rescue the collapsing confidence of the self-employed in the UK.
If you’re self-employed (a sole trader) in the UK and carry out some of your work from your own home, then there’s good news for you: you’re likely entitled to include part of the running costs of your home in your accounts.
In our latest success story, we discuss the success of Stem + Glory, a vegan restaurant, with the owner Louise Palmer-Masterton. Louise, a yoga instructor turned entrepreneur gives us an insight into her business journey, from discussing future plans to the rise of veganism.
Becoming ‘self-employed’ is the most popular means of starting up a new business. You can become self-employed through becoming a sole trader or forming a partnership. Sole traders make up over 60% of all UK businesses (3.4 million), and partnerships account for another 7% (414,000). Here we look at the basics of what is a sole trader and things you should consider before taking the leap.