If you work for yourself, you have a couple of options of trading entity, e.g. as a: Sole trader (an individual) Partnership (two or more individuals or companies) Limited liability partnership Limited company We are often asked, ‘Should I form a limited company?’ The reality is that there is no easy answer, as each situation …
Starting a business can be an extremely satisfying way of earning a living, which can lead to many better things, but it is not easy and can be very challenging. It takes a lot of commitment, initiative and hard work, it will probably involve longer hours than a ‘normal’ job and may take years for …
If you start working for yourself, you must register for Self Assessment with HM Revenue & Customs (HMRC) within the first three full months of self employment. Otherwise you may be liable to a penalty of £100. Once you become self-employed, the tax rules are quite different from those that may have applied when you were …
Whether an individual is an employee or self-employed in a particular situation is a question of fact depending on the terms under which he or she works. When you engage someone to do work for you, you have to decide whether or not to apply the PAYE rules. It is up to you to get …
Value added tax (VAT) registered businesses act as unpaid tax collectors and are required to account both promptly and accurately for all the tax revenue collected by them. The VAT system is policed by HM Revenue and Customs (HMRC) with heavy penalties for breaches of the legislation. Ignorance is not an acceptable excuse for …