(Ironic clap of thunder) ⚡
Luckily, we’ve got you covered. ☂️ Here’s everything you need to know.
Here are some examples:
So, you’re bossing your own business. Or side hustlin’ your way to success. Congrats 👏
We hate to rain on your parade, but with great power comes great responsibility…
Yes, as a sole trader, you’ll need to register for Self Assessment. HMRC will want to keep track of your income and tax you accordingly.
As a sole trader, you’ll need to:
Yikes! We hope you’re taking notes.
You’ll need to register by 5th October. 🍂 We’d highlight, circle, and bookmark this one!
The good news is, the registration process is straightforward. Particularly as you have us to guide you. 😉 You’ll only ever need to register once, and here’s what you need to do:
You’ll get a letter with your Unique Taxpayer Reference (UTR) number by post. After you get that letter, you’ll receive another one within 10 working days with a code to activate your UTR.
You can also register using this form:
It can take around 4 weeks to complete the Self Assessment registration process – so start ASAP! Future you will be grateful🙏
You’ll need this information so keep it to hand (or write it down on paper, we’re not fussy!).
If you stop being a sole trader, you’ll have to let HMRC know as soon as possible, otherwise, they’ll still expect you to file a Self Assessment tax return. 😱
If you’re a sole trader, you only need to register for VAT if you earn over £85,000 every tax year. VAT stands for Value Added Tax. It’s added onto most goods and services in the UK. At the moment, the VAT rate for most goods and services is 20%.
We love these proactive questions! Keep ’em coming. 👋
Ah yes, we thought you might want to hear more. 😏 As a sole trader, you’ve got a lot to keep track of. Which is why we mentioned our free bookkeeping tools.
Our accounting overview allows you to track all your business income and expenses, all at once.
And, you can securely connect your bank account or credit cards to automate your finance management.
But, that’s not all. Find out more here. 👇
Woah. That was a lot to digest. But, you’ve done it now!
Register as a sole trader and the hard part is done. 🥵 And, you’re welcome back here anytime, for all the advice you need.
Manage your self-employed finances in one place with 10/10 bookkeeping tools.