Thread: Starting out
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Old 05-15-2008, 01:32 PM   #2 (permalink)
timhoward
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Join Date: Nov 2007
Posts: 12
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HI Jemma,

I can give you some advice on the accounting side of things, normally if your profits are going to be less than £5435 PA I would normally suggest going as a sole trader, if you are a middle rate tax payer you will just pay 20% income tax on your earnings, above £5435 will incur another 8% Class 4 National Insurance, however this is depending on the work you get, some agencies insist on you being a Limited Company to move any potential burden of employment taxes from them to your Limited Company.

You will need to register as self employed using form CWF1 within 3 months of starting to trade.

Once you build up your income I would then suggest opening a Limited Company to minimise your tax liabilities.

contact Danbro accounting. they give free advice on this type of thing too.

Hope this helps.
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