Setting up as a sole trader in the trades

As a sole trader, you’re not an employee, but you’re running a business. Once you’ve paid off all taxes, you’ll be able to keep any leftover profit.

As soon as you start working for yourself, you’re classed as a sole trader by HMRC – even if you haven’t told them. Legally, you’re required to register as a sole trader if you’ve earned more than £1,000 from self-employment in the last year.

You can start the process through theGovernment’s website.

The first thing to do when setting up as a sole trader is to choose a name. Your business can be called anything (within reason), including your name, a description of what you do or something completely random.

Being a sole trader means you’re responsible for your tax affairs and paperwork. You will need to register for self-assessment tax and complete a tax return every year.

Five things to know

• Register quickly- If you don’t register with HMRC within the first three full months of becoming self-employed, you may have to pay a penalty of £100.
• Do-it-yourself-有很多网站会向你收取费用，让你成为一个独家经销商，但他们只是从你可以处理的事情上赚钱。你应该能够在不到一个小时的时间内注册自我评估。
• Set up a business bank account- You can use your current account, but it’s much easier to keep track of spending if you use a separate bank account for your business.
• Start saving- The minute you start earning, start saving for tax, NI contributions and your pension.
• Keep records- You should keep records of everything, from the hours you've worked to all receipts and expenses.