Sole Trader

Most Sole Traders are known as self employed:-

• Run your business for yourself and take responsibility for its success or failure
• Have several customers at the same time
• Can decide how, where and when you do your work
• Can hire other people at your own expense to help you or to do the work for you
• Provide the main items of equipment to do your work
• Are responsible for finishing any unsatisfactory work in your own time
• Charge an agreed fixed price for your work
• Sell goods or services to make a profit
• You may need to be CIS registered depending if you work with in the construction industry
• Sole traders can be VAT registered

What you are required to do:

• Register as self-employed with HM Revenue and Customs (HMRC) to make sure you pay the correct Income Tax and National Insurance
• Register as contractors with HM Revenue and Customs (HMRC) to make sure you pay the correct construction scheme deductions
• Keep records of your business income and outgoings
• Complete yearly tax return
• Pay your tax each year, usually in 2 payments on the 31 January and 31 July

Depending on the business size will depend if it is essential for your business to be VAT registered and a CIS contractor. Petra Accounting will help to make decision and give advise.

If you are a one man band trading with a couple of subbies then the completion of your tax return could be as cheap as a one off price of £200

If your business has a higher turnover and you require an online system to raise your PO’s and invoices, have access to online bank statements, required to submit monthly CIS returns, and quarterly VAT returns then the Standard price for this package is £70 per month