If you run your own business as an individual you are considered to be a sole trader.
If you run your own business as an individual, hire people, provide the equipment you need, charge for your services and sell for profit, you are considered to be a sole trader. Which is not a limited company.
As a Sole Trader you keep all of your business’s profits, after tax. You are personally responsible for any losses your business makes. Your legal identity and that of your business are one and the same. You must also follow certain rules on running and naming your business.
Sole Traders are expected to pay tax on any earnings above their tax-free Personal Allowance, thus registration with HMRC online is required within 3 months of becoming a Sole Trader and you must complete an annual self-assessment tax return. You may also be required to register for VAT.
To see more about HMRC sole trader requirements click the button below
Learn moreAccording to the HMRC, you are likely to be self-employed if you:
You need to set up as a Sole Trader if any of the following apply:
If you earned more than £1,000 from self-employment
You need to prove that you are self-employed (i.e. for instance, if you want to claim Tax-Free Childcare)
You want to make voluntary Class 2 National Insurance payments to help you qualify for benefits
There is a simple three-step process to start out as a Sole Trader in the UK, this includes:
Free Initial Consultation
Preparation & filing of Tax Return
Automated Filing Reminders
Tax Planning
Free Email & phone support
Quarterly Business Health Meetings
Free Initial Consultation
Full set of accounts (Annual Financial Statements)
Preparation & filing of Tax Return
Payroll - Up to 3 employees
Automated Filing Reminders
Quarterly Bookkeeping
Tax Planning
Free Email & phone support
Quarterly Management Accounts
Accounting System Setup/Review
Quarterly Business Health Meetings
Free Initial Consultation
Full set of accounts (Annual Financial Statements)
Preparation & filing of Tax Return
Payroll - Up to 10 employees
Automated Filing Reminders
Monthly Bookkeeping
Tax Planning
Free Email & phone support
Monthly Management Accounts
Accounting System Setup/Review
Apps integration
Part-time Finance Director -1 hour/month
Quarterly Business Health Meetings
Check out our packages and features for Sole Traders. To get an instant quote for the packages click the button below:
Free Initital Consultation
Full set of accounts (Annual Financial Statements)
Preparation & filing of Tax Return
Payroll
Up to 3 employees
Up to 10 employees
Automated Filing Reminders
Monthly Bookkeeping
Quarterly Bookkeeping
Tax Planning
Free Email & phone support
Quarterly Management Accounts
Monthly Management Accounts
Accounting System Setup/Review
Apps integration
Part-time Finance Director -1 hour/month
Quarterly Business Health Meetings
Your dedicated accountant will produce personalized management accounts on a monthly or quarterly basis. The management accounts provide an overview of your expected tax obligations at year-end.
Monthly fixed retainer based solutions. Xero Online and Dext subscription fees (where applicable) are covered in the fixed monthly fees.
Your dedicated bookkeeper will conduct regular tax efficiency reviews, ensuring you’re claiming everything you could be and operating in the most efficient way possible.
Yes, for example if you work for an employer during the day and run your own business in the evenings, this is considered to be both self-employed and employed.
Yes, Sole-Traders are expected to pay tax on any earnings above their tax-free Personal Allowance, which requires registering with the HMRC.
Yes, Xenith can assist with the registration and submission to the HMRC.
Yes, you as a sole-trader are required to pay income tax on all profits exceeding your Personal Allowance of £12,570 per year.
You are required to register with the HMRC within 3 months of setting up/ starting your self-employment.
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