"Getting Started" Guides

It can be very daunting when you decide to start your own business.

You will be confident in your own knowledge and ability to make your business succeed, but many people wonder where to start regarding keeping records, who to contact, paying taxes, etc.

This information is designed to ease your worries by providing you with this essential knowledge.

The Guides

Click on the links below to view each subject on the right hand side.

Once you're under way, you can think about the type of help you may require from us. Please browse through our list of services on the tab above for more information and email us for a quote.

Taxes Payable as a Self-Employed Person

Your business profits will be subject to Income Tax and National Insurance, at the rates and bands relevant for the period in question.

Income Tax
This is payable on all taxable sole trader and partnership profits. If your Personal Allowance is not being used against other income, such as wages from an employment, it will be used against your business profits, thereby lowering the amount subject to Income Tax. This tax is payable to HM Revenue and Customs (HMRC) on either an annual or 6-monthly basis. See Self Assessment Payments on Account.

The current Income Tax rates and bands are can be found at www.gov.uk/income-tax-rates.

Class 2 National Insurance
This is a small, fixed-rate, non profit-based tax. It used to be payable by monthly DD but from April 2015 is payable along with your Income Tax. If your profits are particularly low, you will be eligible for an exemption.

Class 4 National Insurance
This is a percentage amount, payable along with your Income Tax, based on the profits of your business. However, again, there is an exemption for lower levels of profits.

The current National Insurance rates and bands are can be found at www.gov.uk/national-insurance-rates-letters.