HM Revenue and Customs (HMRC) has launched a new interactive online tool and clearer guidance for people working for themselves and individuals considering self-employment.
Aimed at supporting new and existing ‘sole traders’ to better understand their responsibilities, the new interactive tool explains the records they may need to keep, taxes that may apply to their business, and includes other useful information, for example how to pay a tax bill.
Whether preparing a first business plan, finding their feet as a fledgling firm, or already an established enterprise – small businesses across the UK can access the support and information easily and free of charge. And just like UK businesses, our support comes in all shapes and sizes.
People working for themselves may need to set up as a sole trader, even if they have another job with an employer. Sole traders are classed as self-employed for tax purposes, have responsibility for any debts to their business and have some accounting responsibility.
HMRC’s new  Set up as a sole trader: step by step guide supports people working for themselves to understand when they may need to register as a sole trader and how to do so. This is presented in 7 simple steps.
There are several HMRC interactive tools available, including one newly launched to help businesses estimate what VAT registration may mean for them. The VAT Registration Estimator was developed after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require businesses to register for VAT and its effect on profits.
See the full HMRC news release about the new tool here.
Go to GOV.UK and search ‘starting a business’ to find guidance on all aspects of trading including what taxes may apply to you as a sole trader.
