Becoming a sole trader is the easiest way to start to trade. Within three months of trading you must register with the HMRC. Beach Accountants can assist you in completing all the relevant forms necessary so that you stay compliant and do not incur any penalties.
A partnership, where more than one person starts a trade, adds a slightly more complex structure, in that not only do you need to have completed self assessment personal tax return for each partner, you also need to complete a Partnership Tax Return.
Sole Trader and Partnerships are governed by some of the same rules as Limited Companies when it comes to VAT and employing staff. However, you pay Income Tax on your profits and Class 4 National Insurance.
You must keep a record of all your income and expense receipts to prepare your Annual Report and Accounts.
Beach Accountants have many years of experience dealing with Sole Traders and Partnerships.