Setting up as sole trader

When do you need to register with HMRC?

5 October following end of TY business commences

when will you not get penalty for late HMRC notification?

if loss made in opening year

when does a TR need to be filed?

31 Jan following the end of the relevant tax year

what are sole traders taxed on?

total taxable profit made in the year

Do you pay NIC when loss making?

you could make voluntary Class 2 payments to preserve entitlement to state pension

how can opening year losses be used?

• Offset against other income in TY of loss or previous tax year

• Losses made in first 4 TY can be carried and offset against in income in previous 3 TY

• Losses can be c/f to offset against future profits from the trade

when do you need to register for VAT?

when turnover exceeds £90k in previous 3 months