Self Employment

Self-employment means working for yourself. You are your own boss. You decide what you do each day and what you charge. You may employ people to work for you. You may have business partners to share the work with.

You're usually self-employed if you can answer 'yes' to the following:

  • do you have the final say in how the business is run?
  • are you responsible for meeting any losses as well as taking any profits?
  • can you hire someone on your own terms to do work for you?
  • do you risk your own money?
  • do you provide the main items of equipment you need to do your job?
  • do you agree to do a job for a fixed price regardless of how long it may take?
  • can you decide what work to do, how and when to work and where to provide the services?
  • do you have to correct unsatisfactory work in your own time and at your own expense?

As a self employed person, you will be taxed differently to an employee. You will be responsible for paying income tax on your earnings and will usually need the help of an accountant. There are special tax relieves and allowances which self-employed people can claim.

If you are registered as self-employed you'll be sent a Self Assessment tax return (if you file on paper), or a Notice to File (if you file online) soon after the end of the tax year – 5 April. The paper return must reach us by 31 October following the end of the tax year. The online return must be filed with us by 31 January following the end of the tax year.

The services we provide are:

  • We write to you annually to request the information to prepare your return
  • We prepare your return based on the information you provide
  • We calculate your tax liabilities and advise you on dates of payment.
  • We submit your return electronically to HM Revenue and Customs
  • We deal with any queries on the return
  • During the year we check your notice of coding to ensure you are taxed appropriately at source on your earned income
  • During the preparation of your annual return if we think there are any potential tax saving opportunities you can benefit from we will advice you accordingly