Setting up as a Sole Trader in Peterborough?
Becoming a Sole Trader is the easiest way into self-employment and it is for those who are ‘one-man bands.’ You won’t have to pay any registration fees as a sole trader, and keeping your eye on records and accounts is fairly straight forward, also there is the advantage that you get to keep all the profits. On the other hand, you alone are personally liable for any debts your business gathers, which does add to the risk.
If you are a sole trader or thinking about become one, you need to register as self-employed with HMRC and file a self-assessment tax return each year. Your profits will be taxed as income, you pay a fixed-rate class 2 national insurance, regardless of your profits. You will pay class 4 national insurance on any profits you do make.
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