What is Self-Employment
Self Employed is the simplest way to start a business; it doesn’t involve any registration fees. The only drawback is that you are personally liable for any debts that your business runs up, these make risky options for businesses that require a lot of investment. If you are self-employed you would need to complete a Self-Assessment tax return. We can complete and file your return online or fill in a paper form. You would probably need to pay any Income Tax you owe for a tax year in two installments i.e. January and July plus a final ‘balancing payment’.
We have designed Packages according to the turnover of your business and the work involved. Please select one of the options on left hand side to see the fixed fee structure.
What to do being a Self employed
- Register as a self-employed with HM Revenue & Customs within 3 months of your setting up
- Pay Class 2 National Insurance contributions (£2.50/week)( may change in future) – HMRC will send you Class 2 National bills every quarter, unless exempted due to small earnings.
- Set up a separate business account If possible – Ask us if you need to open a business bank account.
- File Self-Assessment Tax return every year.
- Pay tax on yourself employment profits according to the tax band you fall in.
- Pay Class 4 National insurance contribution on profits.
- Register your Business for VAT in turnover is above the VAT threshold.
- If you have employees, you should set up a PAYE system to collect income tax and National Insurance contributions.
- Keep records of all Sale invoices
- Keep records of all Purchase invoices/ Expenses – if you are our client, you can request us a list of possible allowable expenses. This will give you an idea what you can and can’t claim for.
- Keep records of all business bank statement
- Keep records of business credit card statements if any
- Keep records of VAT – if registered
- Keep record of all the employees & casual labour
- Keep records of any other information which you believe is relevant.
- Record Keeping recommended By HM Revenue & Customs