Becoming Self-Employed - help and advice in Kingston upon Thames
The decision to become self-employed is a significant one, and if you are looking to start your own business as a freelancer, a contractor or a self-employed professional in Kingston upon Thames, it is essential to seek the advice of an experienced professional.
Some of the things you'll need to consider include:
- Should you become a limited company or simply set up as a sole trader?
- Paying National Insurance contributions
- Completing a self assessment personal tax return
- Registering as a sole trader with HMRC
- Tax planning for the self-employed
- Setting up a business bank account
- Claiming allowable expenses to reduce your tax bill
- Record-keeping and invoicing
- Registering for VAT
- Insurance, such as public liability insurance
- Budgeting and cashflow
If you are setting up as a sole trader, you'll need to register with HM Revenue & Customs as soon as possible - even if you already fill in a tax return each year. If you don't tell them as soon as you begin self-employment you may incur penalties. You can do this online.
You are required to complete a Personal Tax Return following the end of the tax year on 5 April. Alderwick James & Co will review your income and expenditure and then calculate your tax and national insurance liability. The team can also assist you with your payments on account.
You are required to register for VAT if your turnover exceeds a certain threshold set by HMRC, although some sole traders opt to do so even when they have income below the threshold. Once registered, it is possible to claim back the VAT on business purchases. Before making your decision you should talk to Alderwick James & Co for advice. We can even help you complete your VAT return if required.
As a new business owner, you will need to consider taking out insurance. If members of the public visit your place of work you may need Public Liability Insurance. This will protect you from claims made by third parties for injuries to the person, or damage to property caused as a result of your business activities. You may also require Professional Indemnity Insurance if you provide advice which could have an impact on your clients' financial affairs.
Tax planning is also essential - we can help you arrange your business and financial affairs to be as tax efficient as possible within the law.
We have helped numerous entrepreneurs to become self-employed in the Kingston upon Thames area - contact us for more advice.