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Tradesman News

Becoming a Self Employed Tradesman

by User Not Found | Feb 15, 2017

Choosing a type of self employed tradesman

Sole Trader

The sole trader route is the easiest and most common way to set up as self employed tradesman. All you need to do is register with HMRC, and then keep a record of all income and expenses, complete an annual Self-Assessment tax return, and pay your income tax and national insurance contributions.

Limited Company

To set up your own company, you need to incorporate your company with Companies House, as well as HMRC. You will need to complete annual company accounts, as well as your tax return, keep a record of all income and expenses, pay income tax, national insurance contributions, corporation tax, and tax on any dividends, as well as open a separate business bank account.
Visit Contractor Weekly for more information on running a limited company.

Partnership

If you are entering into a joint venture with other another tradesman (or tradesmen), it is also possible to form your business as a partnership.  One partner will need to act as the ‘nominated partner’ for the purposes of managing the partnership’s tax affairs, and for keeping business records.  Partnerships can be general partnerships or ‘Limited Liability Partnerships’ – the latter, as the name suggests, limits the extent for which partners can be held liable for the acts of other partners.  As with any joint venture, professional advice should be sought on how best to structure your affairs.

For more information, contact Rhino on 0116 243 7904

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