Am I Self Employed?

Do you have the final say in how the business is run?

Do you use your own money in the business?

Are you responsible for meeting the losses of the business as well as taking the profits?

Do you provide the main items of equipment you need to do the job, for yourself and people you hire?

Do you employee people to do the work you have taken on and pay for them out of your own pocket?

If you are self-employed, you could be operating either as a sole trader or partnership or you could choose to trade through a limited company. Each structure has specfic registration and set up requirements. read more ...

Statutory and Year End Requirements

To trade as a sole trader and work as self-employed, you will be required to register as self-employed with Inland Revenue within 3 months of starting to trade. Failure to do so could result in a penalty of £100. You can do this by completing a form CWF1 or calling your local Inland Revenue office.

As a sole trader/self employed person or company director you will be required to complete a self-assessment and pay tax once a year.

You will also be required to make weekly Class 2 NI contributions of £2.05 per week. If you earn over £4745 during a tax year, you will also become liable for Class 4 NI.