Self-Employed

Are you self-employed?

You are a self-employed/sole trader if you:

  • Run your own business
  • Have several customers
  • Can choose your own working ours, and where you work
  • Can hire people at your own expense to do work for you
  • Provide your own equipment
  • Charge an agreed fixed price for your work
  • Sell goods or services to make a profit
  • Sell items regularly to make a profit
  • Make items to sell for a profit
  • Earn commission from selling goods for other people

If you are self-employed and any of the following are true, you will need to register as self-employed with HMRC (https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed):

  • You earned more than £1,000 from self-employment between the 6th April and 5th April the following year
  • You need to prove you’re self-employed
  • You want to make voluntary Class 2 National Insurance payments to help you qualify for benefits such as state pension

You will need to keep records of your business income and expenditure, prepare and submit a self-assessment tax return to HMRC each year, and pay income tax on your profits as well as class 2 and class 4 National Insurance Contributions.

If your turnover is in excess of £85,000 you may need to register for VAT.self employed accounts fareham

How can we help?

Regular reminders throughout the year, requesting relevant information for your return

Expert support and advice

Optimise your tax efficiency by identifying any potential reliefs you may be able to claim

Prepare annual accounts so you can see how your business has performed in the year

Calculate your tax/refund due and provide a schedule of payments

Complete and file your return on your behalf

Deal directly with HMRC on your behalf

Detailed knowledge on costs to be reclaimed to reduce your tax liability

Questions

Here are some answers to common questions we get asked.  Please let us know if you'd like to discuss any questions you have and we'll see how we can best assist you.

Do I need an accountant?

No.  You don’t have to use an accountant to file your tax return.  But having an accountant brings with it the peace of mind that you return has been prepared correctly and within the tax rules and guidelines, it also takes away the stress and worry of having to do it yourself and frees up your time to focus on your business or just spend time doing the things you enjoy rather than tax!

I am a subcontractor and having tax deducted under CIS, do I still need to do a tax return?

Yes, as you are self-employed you will need to submit a tax return to HMRC each year.  You should retain the deduction certificates you receive from your contractor.  These will be included in your tax return and any tax already deducted will be deducted from your liability for the year in calculating the amount of tax due.

I have just started trading as a sole trader what do I need to do?

You will need to register for self assessment and as self-employed with HMRC, using the following link:

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

If you are unsure, this is something that we can do for you as part of the process of setting you up as a client of Indigo Accounts Ltd.

What expenses can I claim?

You can claim tax relief on all costs that you incur wholly and exclusively for the purposes of your business. Common items that can be claimed are:

  • Telephone costs
  • Materials
  • Tools
  • Computer costs
  • Printing, postage and stationery costs
  • Travel/motor expenses for travelling to and from customers
  • Insurance
  • Professional subscriptions
Can’t find the answer to your question?

Please feel free to Contact Us and we can see how we can help.