Set up as Sole Trader in UK
If you’re a sole trader, you’re running your own business as an individual.
This is known as being ‘self-employed’.
You can keep all your business’ profits
after you’ve paid tax on them.
Take on staff
You can take on staff - ‘sole trader’ means you’re responsible for the
business, not that you have to work alone.
Your responsibilities
As a sole trader you’re responsible for:
- Your business debts
- Bills for anything you buy for your business, like stock or equipment
- Keeping records of your business’ sales and expenses
- Sending a Self-Assessment tax return every year
- Paying Income Tax on the profits your business makes and National
Insurance
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You must:
- Send a Self-Assessment tax return every year
- Pay Income Tax on the profits your business makes
- Pay National Insurance
You must also register for VAT if you expect your business’ takings
to be more than £77,000 a year.
Register for Self-Assessment
You must register for Self-Assessment with HMRC as soon as you start
your business.
Register here for Self-Assessment :
www.gov.uk/register-for-self-assessment
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