Self-employment ― overview

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note provides an overview of the type of income which is regarded as self-employment and associated key tax issues.

Meaning of a sole trader

When an individual starts to work for themselves on their own they are self-employed and classified as a sole trader. The likely characteristics are:

•
the person sells goods or services to make a profit
•
the person takes responsibility for the success or failure of the business
•
they will have several customers or clients they are working for at the same time
•
they can hire other people to work in the business and pay them out of the profits of the business
•
items of equipment used in the business are provided by the individual
•
the responsibility for correcting any defective work lies with the individual

These characteristics could also apply if an individual sets up and owns a limited company, but for tax purposes the individual is not treated as self-employed ― they are an owner and employee of the company. In addition, a person

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

What are connected companies for loan relationship purposes ― practical approach

What are connected companies for loan relationship purposes ― practical approachBrief overview of the rulesThe loan relationships legislation applies to any ‘money debt’ arising from the lending of money entered into by a company, either as a lender or borrower. The rules are contained in CTA 2009,

20 Apr 2021 16:00 | Produced by Tolley Read more

Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more

UU��ֱ��