How Do I Set up as a Sole Trader?

Sole Traders

   1. Choose a name

You can trade under your name or choose something else.

   2. Record

You will need to record your business income and expenses for the purposes of tax returns.

   3. Registering for Tax

If your VAT taxable turnover, which is the total value of everything that you sell that is not exempt from VAT, is over £85,000, then you must register with HMRC.

You can register online and simultaneously; you can appoint an accountant or an agent to submit VAT returns and liaison with HMRC on your behalf. The date you register is known as your effective date of registration and this is the date on which you pay HMRC VAT every year. As a sole trader, you can file your self-assessment cash returns online.

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