You can now register your own UK company more easily, quickly and cost effectively then ever. Use our online service, or call the office, and your application will be submitted to Companies House instantly. You can start trading within 4h. We offer clean company formation.

Setting up as a self-employed sole trader is the simplest and quickest way to start a one-person business.  Record keeping and accounting is straightforward, and there are the benefits of being your own boss. This guide explains the consequences - and the legal requirements - of setting up as a sole trader. You will also find out how to meet your responsibilities for paying your own tax and National Insurance. Finally, our checklist will help you make sure that you have put your business on a proper legal footing.
As a sole trader you will have to pay income tax on any profits from your business. You must fill in a self-assessment tax return each year, detailing your income and expenses. Make sure you register as self-employed with HM Revenue & Customs (HMRC) as soon as you start up in business on your own. If you fail to do this within the first three full months of becoming self-employed, you may have to pay a penalty of £100.
You'll have to make flat-rate Class 2 National Insurance contributions (NICs) throughout the year. If your annual profits are over a certain amount you will have to pay Class 4 NICs.