Self-Employed (Sole Trader)– if you start working for yourself, you’re classed as a sole trader. This means you’re self-employed – even if you haven’t yet told HM Revenue and Customs (HMRC).
If you start working as self-employed, you must register with HMRC. You can do this at any time up to 5 October of your business’ second tax year. A tax year runs from 6 April to 5 April.
A self employed person has to pay the correct Income Tax and National Insurance ( Class 2 or/and Class 4).
As of April 2016, if your business has an annual turnover of £83,000 or more, you must register for VAT.
You might also consider the flat rate VAT scheme, which makes accounting for VAT much simpler.
As your tax agent we not only offer proffesional and complex help with your Self Assesment Tax Return but also we are able to advise you if you’d be better off on the Flat Rate or standard VAT scheme.