Set up as a sole trader
How to register as a sole trader
Guide
To set up as a sole trader, you need to register for register for Self Assessment and file a tax return every year.
Your responsibilities as sole trder
You'll need to:
- keep records of your business's sales and expenses
- send a Self Assessment tax return every year
- pay Income Tax on your profits and Class 2 and Class 4 National Insurance - use HMRC's calculator to help you budget for this
You'll need to apply for a National Insurance number if you're moving to the UK to set up a business.
Registering for VAT
You must register for VAT if your turnover is over £90,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT. Read guidance on VAT registration.
Working in the construction industry
Register with HMRC for the Construction Industry Scheme (CIS) if you're working in the construction industry as a subcontractor or contractor.
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