Self Employed / Partnership

Self Employed /Partnership /Subcontractor (CIS)

Being a sole trader is the simplest way to run a business, but you must register as self-employed. You are personally liable for any debts that your business runs up, which can make this a risky option for businesses that need a lot of investment.

It is easy to start up as a sole trader. Simply register with HMRC within three months of starting your business. A self employed person has to pay the correct Income Tax and National Insurance ( Class 2 or/and Class 4).

Pros/Cons

Pros

Control - You have complete control over your assets and business decisions. It's also relatively easy to wind up or change structure if you grow.


Lower accountancy costs - Because accounting is simpler your accountancy costs will be lower.


Employment status - The employment status risk lies with the client, not you.


Less Administration - Fewer statutory obligations mean less paperwork – you just need to submit your personal self-assessment every year.

Cons

Less take-home pay - Compared to a Limited Company you will take home less net pay from an equivalent turnover. You are personally liable to pay tax on all income earned.


Raising funds - It can be more difficult to raise funding as you will appear less established and less able to repay.


Status - Some clients look more favourably at Limited Companies and will not see Sole Traders in the same light.


Liability - You may be personally liable if things go wrong. Your own finances and possessions may be at risk.

Register For Self Employed / Partnership/ Subcontractor (CIS) £45.00

Register Now


Self Assessment Tax Return

Company Turnover Price in GBP
Zero turnover £50.00
Up to 10 000.00 £100.00
Up to 18 000.00 £120.00
Up to 25 000.00 £135.00
Up to 35 000.00 £165.00
Over 35 000.00 Please contact us

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Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return.

How you do this depends on whether
  • You’re self-employed / CIS (subcontractors)
  • You need to send a return for any other reason
  • If you’re a company director
  • You are a partner in a self – employed partnership
Deadlines
Paper Tax Returns Midnight 31 October
Online Tax Returns Midnight 31 January
Pay the Tax You Owe Midnight 31 January

You will usually pay a penalty if you’re late.

An ‘Accounting period’ for self employed / sole trader is from 6th April till 5th April (for e.g. 6th April 2015 – 5th April 2016)

When you send the tax return, you’ll need to
  • Work out your trading income
  • Add up your allowable expenses calculate your capital allowances, including any balancing charges if you’ve sold business equipment or machinery
  • Work out if you owe Capital Gains Tax on any assets you’ve sold or ‘disposed’ of
  • Calculate your final profit or loss

ABS Service Accountancy & Bookkeeping Ltd offers proffesional and complex help with your Self Assesment Tax Return.

Contact Us


Stop Being Self Employed £45.00

You must tell HM Revenue and Customs (HMRC) if you’ve stopped trading as a sole trader or you’re ending or leaving a business partnership. You’ll need to send final tax returns and tell employees, if you have one, that you’re closing your business.

De-Register Now

 

 

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