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trying to work out the best way to do this. my mrs has started working for herself (as a personal trainer). We think setting up as sole trader is the way to go. Has anyone had experience of setting up for a similar format of work? The HMRC site states that you don't need to register until 5th Oct of the 2nd year of trading.
I assume then that as she started trading in September this would mean registering before 05/10/19?
Also are her only responsibilities until then to keep accounts (probably 'cash basis' accounting)?
cheers
She'll need to pay national insurance if she wants full state pension. Being self employed means you don't pay a lot of income tax. You can make out lots of things are for business expenses or make out things cost a lot more than they do. The consequence of this is that you're screwed applying for a mortgage as they'll use those income figures.
NI is now worked out and payed with your tax, no separate payments. wish i didn't pay a lot of income tax, my accountant works it all out from my paperwork so theres not much room to avoid it.
As you seem to have got, setting up as a sole trader is very easy. You just tell HMRC at some point then fill out a self assessment tax return at the end of the year. For now just keep a good record of money in and money out. Stick it all in a spreadsheet for now. Little tip: add a catagory column and and divide payments up, eg office, travel, capital expenditures, etc. Makes it much easier to tot up for the self assessment
Accounting in wave or quickbooks, does what nick suggests and quickbooks does returns too.
Mortgages are not impossible. Even me as a sub £20000PA freelancer could get one.
Public Liability Insurance? Car Insurance suitable for business?