How to open a self-employed company in the UK

Self-employment (Sole Trading) is a sole business undertaking (in any branch of industry). Self-employment is the easiest form of running a business in Great Britain (UK). In order to register it, you have to have the National Insurance and UK-specific address. Self-employment should be registered no later than 28 days before starting business operations. Starting self-employment does not limit the possibility of being employed basing on a work contract.
Tax-exempt amount: £10,600.00 (2015/2016)
NIN fee-free amount: £8060.00 (2015/2016)
Low insurance premiums: £145.60 rocznie
Tax settlement and NIN premium payment once a year only
Cost deduction and tax amount limitation possibilities

Self-employer guidelines


Tax-exempt amount: £10,600.00 (2015/2016).
NIN fee-free amount: 4 £8050.00 (2015/2016).
The discussed work status can be chosen by every person willing to work on his or her own expense.
There is also the possibility of hiring workers, subcontractors, and taking advantage of the PAYE system (except of construction industry).
VAT registration after exceeding the amount of £82,000.00.

Self-employed – construction industry

Tax-exempt amount: £10,600.00 (2015/2016).
NIN fee-free amount: £8050.00 (2015/2016).
Additional subcontractor status registration is needed for your employer to make deductions amounting to 20 % of your salary.
Additionally, there is the possibility of registering the contactor status, thanks to which you can hire employees. Without registration, you will not be allowed to deduct the costs generated by the employees hired!
may also employ workers by taking advantage of the PAYE system.
VAT registration after exceeding the amount of £82,000.00.


It is a simple form of running a business similar to self-employment. However, in this case, business partners create a company.

Crucial pieces of information and dates

In Great Britain, tax year lasts from 6th April till 5th April of the next year. You have to pay all the taxes and fees related to your self-employment between 6th April and 31st January. If you fail to settle all the payment till then, HMRC may request you to pay a fine amounting up to £6,500.00. Each person having his or her own UTR number is obliged to present the annual settlement to proper authorities.

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