If you’ve just started out as a Freelancer or Sole Trader, you will definitely need an accountant. There are a lot of options available. Unfortunately a large proportion of accountants may charge you every time you get in contact with them; for every phone call, email or meeting.
Our aim is make out clients feel comfortable about speaking to us and not being on a stop clock. In the beginning you will have a lot of questions and will feel content knowing that you can contact your accountant as many times as you like without being on a timer and waiting for a large bill.
Sole Traders must register with HM Revenue & Customs (HMRC) and follow certain rules and criteria on running and naming their business.
SELF EMPLOYED STATUS
If you are a sole trader, you are running your own business as a one man.or woman band. This is known as being ‘self-employed’. You can keep all your business’ profits after you’ve paid tax on them.
You can take on staff – ‘sole trader’ means you’re responsible for the business, not that you have to work alone.
REGISTER FOR SELF ASSESSMENT
You must register for self assessment with the HMRC as soon as you can after starting your business. This is something that we can help you with.
You’re responsible for:
- Your business debts
- Bills for anything you buy for your business, like stock or equipment
- Keeping records of your business’ sales and expenses
- Sending a self assessment tax return every year
- Paying income tax on the profits your business makes and National Insurance
NAMING YOUR BUSINESS
You can use your own name or trade under a business name. There are rules on using a business name. For example, you can’t:
- Use the terms ‘Limited,’ ‘Ltd’, ‘public limited company,’ ‘plc,’ ‘limited liability partnership,’ ‘LLP’ or their Welsh equivalents
- Use sensitive words or expressions unless you have permission
- Suggest a connection with government or local authorities
- Use a name that is too similar to a registered trademark or an existing business in the same area or sector
- Be offensive
You must include your own name and business name (if you have one) on any official paperwork, like invoices and letters.
At IB&Co Accountants we specialise in completing the registration with the HMRC for Sole Traders as we can avoid you incurring a fine of up to £1,000 with an on-going fine (of up to £100 per day) as a result of not complying with the rules.
For more information and advice on how to complete a registration with HMRC contact us at firstname.lastname@example.org or call us on 02078594472.