Self-employment

Starting Self Employment

So many people know what the want to do and never do it. Others make a start but struggle to get the paperwork and the record-keeping right so they end up in a mess. It can be complicated getting started so why not let us help you as we have helped hundreds of other new businesses.

Self-employment is the simplest and easiest way to start a new business. You can keep straightforward records, report the profit on your tax return and pay tax and national insurance on the taxable profit. We can set you up with easy to use software to keep your records and raise invoices, all on your mobile phone if you prefer, and then produce your accounts and tax return for you. All for a simple monthly fee. In addition we will ensure you claim all allowable expenses to legitimately minimise your tax liability (which reduces your accounting cost to start self employment!).

Should I Register As Self-Employed Or Set Up A Limited Company?

We are asked almost daily whether it would be best to be a sole trader (it means the same as self-employed) or start a limited company. There are several issues you need to understand before coming to a decision about what works best for you.

Tax And Self Employment

For the self-employed all profits are taxable in the year they are earned, in addition to any other sources of income, for simple tax returns. There is no flexibility for deferring some of those profits to another year if you happen to have a particularly good year and your annual tax return is at the higher rate.

Can I Change From Self Employment To A Limited Company?

Yes, you can start as self-employed and later incorporate. In fact, this is a common route when a new business is unsure of how large it will grow and whether the savings will outweigh the costs. If you make an initial loss being a sole trader you may be able to offset the loss against employment income in the same or previous years and obtain a tax rebate.

Much of this will depend on your particular circumstances so you will need to consult a professional tax return accountant near you to ensure that any set up and transition is done properly.

Why not get a FREE consultation about becoming tax and self-employment

Image

Hi, I'm Ian Marlow and I can help you start self employment

Latest blog posts

loss relief carry back extension

Ian Marlow

HMRC have announced a temporary extension of loss relief carry-back for both companies, sole traders and partnerships, as many businesses across the UK are likely to make losses in the 2020-21 tax year due to the havoc resulting from COVID disruption. The recent Budget announced that losses can be carried back for an extended period...

 2021 Budget Summary

Ian Marlow

More has been disclosed or leaked, of the 2021 Budget announcements than in previous years. But we now have the details and there is a lot to consider. The following 2021 Budget summary is split into four sections:COVID-19 related support measures for UK businesses Support for the UK housing market Taxation changes Other announcementsThe...

Pay As You Grow for Bounce Back Loans

Ian Marlow

The Treasury has advised banks that provide Bounce Back Loans to offer a more flexible approach regarding repayments, called Pay as You Grow,  which is good news for small businesses.Pay As You Grow (PAYG)The new Pay As You Grow rules offer the following concessions:To extend the length of bounce back loans from six years...