Self-employed means that an individual works for themselves. The money earned from self-employment is untaxed so a Self Assessment must be filed with HMRC.
Self-employed refers to individuals that work for themselves. Self-employed individuals are solely responsible for managing their own business, finances, and taxes.
A Self-employed individual, also known as a Sole Trader, needs to register with HMRC as the money they earn is untaxed. So, the individual must submit a Self Assessment tax return to pay the taxes they owe. The first £1000 earned by Self-employed individuals is tax-free and is called the Trading Allowance.
The profit made from Self-employment is liable for Income Tax and National Insurance contributions. The same rate of Income Tax is paid but usually less National Insurance is paid.
Self-employed individuals usually have more flexibility about how long and when the work. However, they miss out on Employee benefits like holiday pay. It is also thought to be less secure than employment.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.Read more
Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.Read more