Getting registered as a Self Employed ???

[Phoenix25]

Hi,
I am an employee of a firm and I also want to register my own company. I went to companies made simple and was thinking to register as a sole trader with them under which they would be registering me as a self employed in HMRC. Would this create any effect on my tax rates?? or any sort of problems??


Thanks in advance.

 

[mhall]

Companies made simple register companies, not sole traders. Do this yourself at www.hmrc.gov.uk

 

[Phoenix25]

Companies made simple register companies, not sole traders. Do this yourself at www.hmrc.gov.uk

Thanks for the reply. Here it is the link for the registration details as a sole trader with companies made simple.
http://www.companiesmadesimple.com/sole-trader-start-up-pack.html

 

[thecyclingartist]

Seeing as you already has a company, why pay £19.99 for something that just takes a few minutes online? Probably as long as it takes you to fill out the form for companiesmadesimple. The only other thing you'd need to do yourself is get a bank account, which you might already have anyway.

 

[Phoenix25]

Seeing as you already has a company, why pay £19.99 for something that just takes a few minutes online? Probably as long as it takes you to fill out the form for companiesmadesimple. The only other thing you'd need to do yourself is get a bank account, which you might already have anyway.

So are you suggesting that I shouldn't register the company??

 

[thecyclingartist]

You said you wanted to be a sole trader. A sole trader isn't a company.

 

[Phoenix25]

Isn't there any tax complications in being a sole trader??

 

[ethical PR]

Hi Phoenix25

As others have mentioned.

It's quite simple... if you want to register as self employed just ring up the HMRC it's free.

If you decide a company format is better for you http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073865436 you can go online and fill out the relevant form yourself it's simple and only takes a few minutes.

You don't need to pay a third party to do it for you.

Why don't you chat things through with an accountant (normally you get the initial meeting for free) they can advise you on tax issues. You just need to make sure on your tax return you identify your total earnings (employed and self employed) and you can be taxed appropriately.

 

[Phoenix25]

Hi Phoenix25

As others have mentioned.

It's quite simple... if you want to register as self employed just ring up the HMRC it's free.

If you decide a company format is better for you http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073865436 you can go online and fill out the relevant form yourself it's simple and only takes a few minutes.

You don't need to pay a third party to do it for you.

Thanks a lot for your reply. Actually I did apply through company house first but they rejected my application because of the following reason. I really dont understand the reason to be honest and just to avoid the complications again, I was looking forward for a third party to do it on my behalf.

Your New Incorporation for the above company was rejected on 06/12/2011 for the following reason(s):

You have not shown appropriate information as regards the prescribed particulars attached to each class of share in the statement of capital. (Voting rights must be listed.) Please see below for guidance: - Details must be shown for every class of share in issue. - Information must be meaningful and not refer a potential searcher to another document or the legislation for the information (i.e. not just state "not applicable" or "refer to Articles, or “as in the Companies Act"). - The company must show details of voting rights and dividend rights, but do not have to refer to distribution or redemption rights if they do not have any. An example of acceptable prescribed particulars:- Each share is entitled to one vote in any circumstances. Each share has equal rights to dividends. Each share is entitled to participate in a distribution arising from a winding up of the company.

 

[Phoenix25]

Why don't you chat things through with an accountant (normally you get the initial meeting for free) they can advise you on tax issues. You just need to make sure on your tax return you identify your total earnings (employed and self employed) and you can be taxed appropriately.

Yeah, now m much inclined to consult an accountant. Seriously these legal documentations scares me a lot

 

[Scalloway]

Hi,
I am an employee of a firm and I also want to register my own company. I went to companies made simple and was thinking to register as a sole trader with them under which they would be registering me as a self employed in HMRC. Would this create any effect on my tax rates?? or any sort of problems??


Thanks in advance.

Here is an article from Which on tax and the self employed

http://www.which.co.uk/money/tax/guides/tax-for-the-self-employed/

 

[deadpixel]

You would have to fill in a taxt rewurn every year. even if you earn nothing you still have to fill it in. its hassle.

 

[altwebdesign]

When I went self employeed, I rang HMRC, the woman on the end of the line said when ddi you start trading, thanks, bye.

Was that simple.

I have an accountant also to help with my self ssesment and being a sole trader, there are no tax complications and its less strict than being a LTD for example.

 

[Phoenix25]

Here is an article from Which on tax and the self employed

http://www.which.co.uk/money/tax/guides/tax-for-the-self-employed/

Thanks mate..

When I went self employeed, I rang HMRC, the woman on the end of the line said when ddi you start trading, thanks, bye.

Was that simple.

I have an accountant also to help with my self ssesment and being a sole trader, there are no tax complications and its less strict than being a LTD for example.

But being a Ltd has its own advantages, the very first impression which your client gets is that you are serious about your business and you have some future aspirations . At the age of 24, no one kinda expects you to be an entrepreneur and having a LTD label with the company name acts as a buffer between your age and your ideas. Usually at the age of 24, mostly seniors just ignore you like unproven theorems, hence you have to show it off a bit.

 

[altwebdesign]

Thanks mate..


But being a Ltd has its own advantages, the very first impression which your client gets is that you are serious about your business and you have some future aspirations . At the age of 24, no one kinda expects you to be an entrepreneur and having a LTD label with the company name acts as a buffer between your age and your ideas. Usually at the age of 24, mostly seniors just ignore you like unproven theorems, hence you have to show it off a bit.

Totally agree, even considering going LTD myself

 

[MyAccountantOnline]

Hi,
I am an employee of a firm and I also want to register my own company. I went to companies made simple and was thinking to register as a sole trader with them under which they would be registering me as a self employed in HMRC. Would this create any effect on my tax rates?? or any sort of problems??


Thanks in advance.

The very first thing you need to do is to decide whether you are going to trade as a soletrader or via a limited company - they are both very different and have very different requirements.

No one can tell you which is the best option without a lot more information but if you are running a business in addition to being an employee you may wish to seriously consider a limited company as it may save you tax especially if you are approaching the 40% tax band.

The effect your business has on your tax will depend on how you structure the business ie a soletrade or a limited company.