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Microstock Photography Forum - General => Off Topic => Topic started by: Pauws99 on July 20, 2012, 03:33

Title: UK becoming a sole trader
Post by: Pauws99 on July 20, 2012, 03:33

At the moment I'm only generating a small income but will shortly be joiniing the ranks of the unemployed - hence an opportunity to seriously ramp up my uploads. I'm wondering at what point in terms of income it becomes worth it/necessary to become a sole trader?

Thanks
Paul

Title: Re: UK becoming a sole trader
Post by: Caz on July 20, 2012, 03:57

Do you mean at what point must you register with HMRC as self employed? As soon as you start selling any images. You should be declaring the income as self employed income, via a self assessment form every year, and pay tax on your earnings.

Title: Re: UK becoming a sole trader
Post by: Microbius on July 20, 2012, 04:48

yup, before now is probably the answer.

Title: Re: UK becoming a sole trader
Post by: gostwyck on July 20, 2012, 04:48

Read all about it;

http://www.hmrc.gov.uk/sa/register.htm (http://www.hmrc.gov.uk/sa/register.htm)

Title: Re: UK becoming a sole trader
Post by: Pauws99 on July 20, 2012, 05:25

Thanks chaps - I'm already registered for self assessment there seems to be also an option to become a sole trader - where you can (try) and offset expenses are there any advantages to this or could I do this on the self assessment form?

Title: Re: UK becoming a sole trader
Post by: ShadySue on July 20, 2012, 06:51

Quote from: Pauws99 on July 20, 2012, 05:25

Thanks chaps - I'm already registered for self assessment there seems to be also an option to become a sole trader - where you can (try) and offset expenses are there any advantages to this or could I do this on the self assessment form?

I guess you can.
I get an accountant to do it all for me. More than worth the money - he more than earned his fees so far by discovering I'd been paying too much tax in my ex day job, which I'd never have known or suspected, and backclaiming it. I just give him a list of my income and outgoings and he does the rest. The form seems to change every year. Last year I noticed that the new categories for expenses had changed and were IMO weird, and I'd never have guessed where to put each expense.

Title: Re: UK becoming a sole trader
Post by: Difydave on July 20, 2012, 07:05

I'd agree with ShadySue. Get an accountant. If you have an ask around you'll get one to do it very reasonably as your accounts should be pretty simple. The forms and rules change all the time, and it's a nightmare to try to keep up with it all.

Title: Re: UK becoming a sole trader
Post by: Pauws99 on July 20, 2012, 08:29

Thanks for your advice with my new found free time lets hope he has plenty of income statements to ridfle through  :D