Self Employed

Self Employment is the simplest way to start a business; it doesn’t involve any government registration fees. If you start working for yourself, you’re classed as a sole trader.

This means you’re self-employed – even if you haven’t yet told HM Revenue and Customs (HMRC). The only drawback is that you are personally liable for any debts that your business runs up, these make risky options for businesses that require a lot of investment. You can be both employed and self-employed at the same time, for example, if you work for an employer during the day and run your own business in the evenings or over the weekend. As a selfemployed, you need self employed accountants who can do accounting for you. If you are self-employed you would need to complete a Self-Assessment tax return, ZMT Advisory Accountant’s can complete and file your return online or fill in a paper form. You would probably need to pay any Income tax you owe for a tax year in two installments i.e. January and July plus a final ‘balancing payment’. As a self-employed, you will have to register within 3 months with HM Revenue & Customs. If you need any help with self-employed registration. Please let our accountants for selfemployed guide you.

C.I.S Tax Returns

If you are working under the construction industry scheme (C.I.S), we can help you to file your personal tax return.

At the end of the tax year ( usually 5th April ), HM Revenue & Customs will send you a notice to file the tax return or if we are acting as an accountant for you, we will send you a reminder to file your personal tax return. You will have to declare the income from all the resources in the tax returns.

  • The full amounts on your invoices as income
  • Any deductions contractors have made in the ‘C.I.S deductions’ field Accountants for self-employed will guide you on the relevant expenses that you can claim to minimize your tax liability. We will work out your tax and National Insurance bill and take off any deductions/expenses made by you. If you still owe tax after this, you’ll need to pay it by 31 January following the end of the tax year. If you’re due a tax refund, we will help you to get a refund from HM Revenue & Customs.

Things To Do

Register as a self-employed with HM Revenue & Customs within 3 months of your setting up

  • Pay Class 2 National Insurance contributions (£2.95/week for 2022/2023). This is collected on a yearly basis with your tax bill. Self-employed people earning profits of £6,725 or more a year. If you’re earning less than this, you can choose to pay voluntary contributions to fill or avoid gaps in your National Insurance record.
  • Set up a separate business account If possible, ask us if you need to open a business bank account.
  • File Self-Assessment tax return every year, The tax year in the UK runs from 6th April to 5th April every year.
  • Pay tax on yourself employment profits according to the tax band you fall in.
  • Pay Class 4 National insurance contribution on profits above £11,909 (2022/2023).
  • Register your Business for VAT in turnover is above the VAT threshold ( Currently £85K a year – 2022/2023).
  • If you have employees, you should set up a PAYE system to collect income tax and National Insurance contributions.

Record Keeping

We try to make things transparent for our clients by providing maximum information.

  • Keep records of all Sale invoices
  • Keep records of all business bank statement
  • Keep records of VAT – if registered
  • Record-Keeping recommended By HM Revenue & Customs – Click here to read more
  • Keep records of business credit card statements if any
  • Keep a record of all the employees & casual labor
  • Keep records of any other information which you believe is relevant
  • Keep records of all Purchase invoices/ Expenses – if you are our client, you can request us a list of possible allowable expenses. This will give you an idea of what you can and can’t claim.