If you are starting a business as a sole trader, here’s how to register….
Author: Russell SmithAugust 24, 2012
When people start a business they know they need to do something about the tax office and accounts but they are a bit daunted about the next step.
When I do this as part of my “Everything you need to know about self employment” workshop, it is the question that is asked the most but it literally takes 5 minutes to explain.
Here’s what you do….
Step 1 – Ask yourself if you are actually self employed?
Are you your own boss?
Do you send sales invoices?
Is your holiday entitlement zero?
Is it your business?
These should be easy questions, if the answer is yes, you are likely to be self employed (not employed)
Call the HMRC helpline on the number below, give them your name and address.
08459 15 45 15
They will then send you a tax return and details of Class 2 National Insurance, its £2.65 per week and you have to pay it! (You can get out of it if your profits are lower than £5,595 but let’s hope they are higher, otherwise you’ll be back to employment).