Self-employment

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The number of self-employed workers increased from 3.8 million in 2008 to 4.6 million in 2015.

Data from the Office for National Statistics (ONS) shows that the number of part-time, self-employed workers grew 88% between 2001 and 2015, compared to 25% for full-time, self-employed workers.

Part-time workers accounted for 1.2 percentage points of the overall 1.6 percentage point increase in self-employment between 2008 and 2015.

There was little evidence of older part-time workers moving to a full-time position, job searching or experiencing dissatisfaction with their status.

Further findings:

  • older workers are more likely to make the transition from full-time to part-time self-employment than younger workers
  • full-time workers are choosing to enter part-time self-employment rather than retirement.

Self-employed checklist

Whether you are a sole trader or in a partnership, it is important to register your business with HMRC before trading.

There are 4 things to complete if you’re self-employed:

  1. HMRC – register with HMRC to pay income tax and national insurance. You will need to do this by 5 October in your business’ second tax year
  2. self-assessment – register to pay your tax each year. The payments will usually be due on 31 January and 31 July
  3. VAT – register your business if your turnover is over £83,000
  4. records – keep accounts of business income and outgoings.

Contact us to discuss self-employment.

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