Self Employed In The UK?
Tax for the self-employed doesn’t have to be taxing… apparently!
We all know, too well, that it can be which is why Whittaker & Co offers a wealth of experience to alleviate the pressures of owning a sole trader.
Whether you are thinking about going alone or are an existing sole trader in the UK Whittaker & Co will be able to assist and advise you.
Making The Decision
- When you decide to work for yourself and “go it alone” – there are many decisions to make
- The biggest decision is the first one – and that is the line of work that you are going to do. As you are sat there, reading this, we shall assume that you have made this decision.
Self Employed
- Being self-employed involves some personal financial risk. Sole Traders must pay their debts if their business fails
- Setting up as a sole trader is quick, easy and involves no cost
- Sole traders can employ people and, later on in their business life, can become a limited company
- You are liable for tax, Class 2 AND Class 4 National Insurance contributions depending on your level of income.
Self Employment, What You Need To Do
- Register as self-employed with HMRC
- Retain all invoices for the work that you have done
- Retain all receipts that are related to your work
- Keep a mileage log for business travel
- Keep your accountant (if you have one) up to date
- Submit tax returns and pay tax liabilities within deadlines
Whether you are thinking about going alone or are an existing sole trader in the UK Whittaker & Co will be able to assist and advise you.
What Whittaker & Co Can Do For You
- Help with your registration for self-employment
- Keep a record of your income and expenditure throughout the tax year
- If required, give you quarterly, six-monthly updates on your business profitability
- Prepare end of year accounts
- Submit Self-Assessment tax returns to HMRC on time and inform you of any tax liability to be paid
- Advice on updates and news from HMRC, i.e. personal allowance, tax allowances, etc.
Expenses You Could Offset Against Tax
- Accommodation expenses
- Telephone and the internet
- Percentage of household expenses for using a room as an office
- Vehicle Expenses/Mileage (if you use mileage you cannot claim any other vehicle-related expenses)
- Travel costs – fuel, train, flights, taxi
- Subsistence
- Protective clothing
- Accountancy fees/Professional fees
- Office equipment
- Specialist equipment
This list is not comprehensive; any expense that is wholly used for business purposes may be allowable.
