If you’re not ready to register your company yet but you are earning money from your idea, becoming a ‘sole trader’ is an option to consider.
1. You do not have to register your business or pay any fees.
2. You must register yourself as ‘Self-Employed’ and pay Class 2 NICs (National Insurance) payments.
3. You must keep a record of all of the income you earn and all of your business expenses. You must register for ‘Self-Assesment’ and submit a tax return each year.
4. You will pay Class 4 NICs on any profit you make.
5. The only down-fall to being a sole-trader is that you are personally liable for any debts run up by your business.
Find out more by visiting the HMRC website.
[image courtesy of Stacey Williamson - Two For Joy Art]
