How To Register A Business Uk Sole Trader

You can also phone hmrc on 0300 200 3500 or print a copy of the online form and send it by post.

How to register a business uk sole trader. Compared to any other business registering as a sole trader in the uk is quite easy. Most businesses register as a sole trader limited company or partnership. For example if from the definitions above you started trading on 1 january 2017 the latest date you could register self employed would be 5 october 2017. It typically takes around 10 days to get an activation code for the government gateway account. Register as a sole trader with hm revenue and customs and legal responsibilities if you run a business as a self employed sole trader.

To register as a sole trader yourself directly with hmrc you must have a government gateway account. Pay income tax on your profits and class 2 and class 4 national insurance use hmrc s calculator to help you budget for this. A sole trader is simply an individual who is self employed and running their own business. Send a self assessment tax return every year. If it qualifies then proceed to register for a business account through the gov uk.

Once you have your government gateway account setup then you can complete the sole trader registration form. Before you register your business as a sole trader use the employment status indicator to check if your work qualifies as self employment. You ll need to provide your name address national insurance number and some details about your business. You ll need to register for self assessment by 5 october in the second tax year after you started trading. How much can you earn as a sole trader before paying tax.

Number if you re moving to the uk to set up a business. How to register as a sole trader the easiest way to register is online on the hmrc website. The process is relatively easy to follow though some questions might arise which requires professional assistance. The stress free guide to registering as a sole trader. There are many benefits of being your own boss including greater control over your work life balance.

Setting out in business on your own might feel daunting but take comfort from the fact that you re in good company there are now almost five million self employed workers in the uk accounting for 15 of the total workforce. You get to keep any profits you earn after tax of course but you will have to personally take the hit of any losses. Getting sole trader registered is very simple. To set up as a sole trader you need to register for register for self assessment and file a tax return every year. Sole traders it s simpler to set up as a sole trader but you re personally responsible for your business s debts.