Originally written by Ben Lobel on Small Business
If you are self-employed then this means you work for yourself, and not for an employer. A sole-trader is a self-employed person, but they are the sole owner of their business.
Within three months of becoming self-employed you need to inform HMRC so they can ensure you are paying Class 2 NICs and you fill in a self-assessment form.
Company directors are not self-employed. Many directors are employees of their company and will be paid as employees in the normal way.
Sole trader vs limited company
Although being a sole trader avoids all the hassle of registering with Companies House and presenting annual accounts, one downside is that your personal assets are not distinguishable from your business assets. In short, your creditors could come after your house and possessions if things go wrong.
Read: How to become a sole trader
And if you are earning over £100,000 as a sole trader, you would be advised to set up a limited company; sole traders lose their personal allowance over the £100,000 threshold, so that anybody earning between £100,000 and £125,000 tax will be taxed at 60pc as opposed to the corporation tax rate of 19pc (due to go down to 18pc in 2020).
Registering as a sole
Monthly Archives: August 2019
Hot Business News Today
Best Work-at-Home Jobs for Homeschooling Moms
by Editor • • 0 Comments
As a homeschooling mom, you’re always on the move. From crafting lesson plans, teaching, monitoring, and managing a house full of responsibilities, you need to be on top of your game every single day! With so much going on, you might wonder how moms who homeschool find the energy, much less the time, to throw […]
The post Best Work-at-Home Jobs for Homeschooling Moms appeared first on The Work at Home Woman.
Hot Business News Today
Want to Become a Better Communicator? Learn to Listen.
by Brian Tracy • • 0 Comments
Hot Business News Today
Supreme Clientele: Branding Lessons From Businesses That Use Buzz to Drive Growth.
by Andrew Medal • • 0 Comments
Hot Business News Today
Supreme Clientele: Branding Lessons From Businesses That Use Buzz to Drive Growth.
by Andrew Medal • • 0 Comments
Hot Business News Today
How a Colorado Home-Improvement Franchise Found Its Market
by Rick Grossmann • • 0 Comments
Hot Business News Today
How a Colorado Home-Improvement Franchise Found Its Market
by Rick Grossmann • • 0 Comments
Hot Business News Today
5 Reasons Mission Statements (Still) Matter for Startups
by Aimee Tariq • • 0 Comments
Hot Business News Today
5 Reasons Mission Statements (Still) Matter for Startups
by Aimee Tariq • • 0 Comments
Hot Business News Today
How a Terrible Motorcycle Accident Led to a Business Built on Relieving Pain
by Terry Rice • • 0 Comments
Dr. Jason Wersland describes his invention, the Theragun, and provides inspiration for entrepreneurs.