Getting set up
- Register as self-employed with HMRC.
- Keep business and personal money separate.
- Track income and expenses from day one.
- Put money aside for tax as you earn.
Sole trader or limited company?
Sole trader is simplest to start; a limited company can be more tax-efficient and limits liability as you grow. Many people start as a sole trader and incorporate later.
Frequently asked questions
How much should I set aside for tax?+
A common rule of thumb is a quarter to a third of profit, but it depends on your income. An accountant can give you a precise figure.