Setting yourself up as Self Employed
Register as a sole trader with HM Revenue and Customs and legal responsibilities if you run a business as a self…www.gov.uk
Working for yourself means that you are personally responsible for controlling and paying your tax, and making sure that your gaining profit in your business.
These are a few pointers to know if you are meant to be self employed.
From here you will need to register with the HMRC( HM Revenues and Customs) which you can do through the website above only.
Once you have registered, you will be responsible for:
- Keeping records of the sales and business expenses
- Sending a self assessment tax return each year
- Paying income tax on your profits and National Insurance
- Have a business name that does not include LTD or be the same as an existing trade mark.
These are great pointers to understand what it is that you need to factor in as expenses to your job, and what to think about when supplying a client with a figure for a specific job.
There also expenses you can claim from for example if you worked from home, in an office/one room, then you can claim expenses on electricity to that room of the house by dividing the yearly bill by the amount of rooms in the house and then by the amount of a days a week you work from home.
When you have started collecting money for jobs, you will need to keep paper and online references to reciepts and payments going in and out that revolve around your business. This is to prove that you are not trying to make tax fraud which is against the law.