I was what is known as a "Sole Trader" in UK accounting speak. It's is easier to run than a limited company, but clients are often reluctant to work with you because because of a tax law called IR35.
Making a limited company is easy, but it does require you to file more paper work, each year, than if you're a sole trader, which is what put me off. My gross income was low so hiring an accountant to look after that side would have been more money than it was worth.
(I'm a regular employee now, so I don't think about it anymore.)
Hi Matt,
Don't let paper work put you off, I still have my limited company and I have an accountant that look after all my taxes. Having said that, I still ensure that I am involved in what is filed and my expenses as a limited company. I will advise that you find a good accounting company and they deal with your paper works and taxes base on what you submitted. Good luck!
I was what is known as a "Sole Trader" in UK accounting speak. It's is easier to run than a limited company, but clients are often reluctant to work with you because because of a tax law called IR35.
Making a limited company is easy, but it does require you to file more paper work, each year, than if you're a sole trader, which is what put me off. My gross income was low so hiring an accountant to look after that side would have been more money than it was worth.
(I'm a regular employee now, so I don't think about it anymore.)
Hi Matt,
Don't let paper work put you off, I still have my limited company and I have an accountant that look after all my taxes. Having said that, I still ensure that I am involved in what is filed and my expenses as a limited company. I will advise that you find a good accounting company and they deal with your paper works and taxes base on what you submitted. Good luck!
Thanks for the encouragement, but free lancing wasn't for me. I prefer knowing where my next paycheque is coming from. 😁