If you are working for yourself you are classed as a self-employed sole trader. As a sole trader, you should already have registered with HMRC and will follow certain rules on running your business. It is not a legal requirement for sole traders to work alone; you can recruit staff but the key point to remember is that you are responsible for the business which includes:
- keeping records of your business’s sales and expenses
- sending a Self-Assessment tax return every year
- paying Income Tax on your profits and Class 2 and Class 4 National Insurance
- your debts
- bills for anything you buy for your business.
Sole traders must register for VAT if you expect its takings to be more than £82,000 a year.
Sole traders are not required to be registered at Companies House and have no obligations to maintain statutory records, prepare and file statutory accounts or to submit an annual return to the Registrar of Companies.
Although you can retain all of the business’s profits after your tax obligations are met you are also personally responsible for any losses made by your business.
If you are a sole trader and are experiencing financial challenges we are able to offer the following services:
- Business Debt Arrangement Scheme
- HMRC Aggressive Tax Planning Claims
- Protected Trust Deeds
Debt advice for sole traders in Glasgow and Edinburgh
We understand that facing up to financial challenges can be an extremely difficult and stressful time. However, you should be reassured to know that there are options available and, with the right advice and support, you can take the necessary steps to improve your situation.
For further information on our debt advice for sole traders, contact us today at an office near you.