If you start working for yourself, you’re classed as a sole trader. This means you’re self-employed – even if you haven’t yet told HM Revenue and Customs (HMRC).
Running a business:
You’re probably self-employed if you:
- run your business for yourself and take responsibility for its success or failure
- have several customers at the same time
- can decide how, where and when you do your work
- can hire other people at your own expense to help you or to do the work for you
- provide the main items of equipment to do your work
- are responsible for finishing any unsatisfactory work in your own time
- charge an agreed fixed price for your work
- sell goods or services to make a profit – including through websites or apps
You can be both employed and self-employed at the same time, for example if you work for an employer during the day and run your own business in the evenings.
Registering as self-employed:
If you’re self-employed, you may need to set up as a sole trader.
Help From Citizens Advice Tax Team:
Citizens Advice IW have a Tax Team who can help self-employed persons with a range of issues, from working tax credit to self-assessments.
For more information please click here or email us at [email protected]
Coronavirus – if you’re self-employed:
If your business has been affected by coronavirus you might be able to get money from the government, for example if you’ve:
- lost out on income
- had to stop working to look after someone
You could get 80% of your average profits up to a maximum of £2,500 per month from the government. This is called the Self-employment Income Support Scheme.
If you’re eligible, you can get money to cover lost income for 3 months. You have until 13 July 2020 to apply.
If your business is still affected by coronavirus in August, you’ll be able to apply to the scheme again. You’ll be able to apply even if you didn’t apply for a first payment.
You won’t have to pay the money back, but you’ll have to pay tax on it.