From all the research I have been doing and looking at different photographers 95% of them are self-employed and running their own business. I’m not to sure whether I would be able to do my self as it takes a lot to run a business – all the requirements from HMRC – HM Revenue and Customs.
Needing to take care of everything by yourself and once your business is running and making good profit and you keep on having new clients. Then you could think about getting help or employing one or two people to help you run it. I will be looking at the information that I will be able to find on the government website.
https://www.gov.uk/set-up-sole-trader
Set up as a sole trader
If you’re a sole trader, you run your own business as an individual and are self-employed.
You can keep all your business’s profits after you’ve paid tax on them. You’re personally responsible for any losses your business makes. You must also follow certain rules on running and naming your business.
Check what counts as self-employed if you’re not sure about your status.
How to register
You need to set up as a sole trader if any of the following apply:
you earned more than £1,000 from self-employment between 6 April 2018 and 5 April 2019
you need to prove you’re self-employed, for example to claim Tax-Free Childcare
you want to make voluntary Class 2 National Insurance payments to help you qualify for benefits
To set up as a sole trader, register for Self Assessment and file a tax return every year.
Your responsibilities
You’ll need to:
keep records of your business’s sales and expenses
send a Self Assessment tax return every year
pay Income Tax on your profits and Class 2 and Class 4 National Insurance – use HMRC’s calculator to help you budget for this
You’ll need to apply for a National Insurance number if you’re moving to the UK to set up a business.
VAT
You must register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT.
Working in construction industry
Register with HMRC for the Construction Industry Scheme (CIS) if you’re working in the construction industry as a subcontractor or contractor.
Naming your business
You can trade under your own name, or you can choose another name for your business. You do not need to register your name.
You must include your name and business name (if you have one) on official paperwork, for example invoices and letters.
Business names
Sole trader names must not:
include ‘limited’, ‘Ltd’, ‘limited liability partnership’, ‘LLP’, ‘public limited company’ or ‘plc’
be offensive
be the same as an existing trade mark
Your name also cannot contain a ‘sensitive’ word or expression, or suggest a connection with government or local authorities, unless you get permission.
ExampleTo use ‘Accredited’ in your company’s name, you need permission from the Department for Business, Energy and Industrial Strategy (BEIS).
Check which words you need permission to use, and who from.
You’ll need to register your name as a trade mark if you want to stop people from trading under your business name.
By reading all of that information, it made me realise that self employment isn’t really a option for me as it just very confusing and I feel like I would become lost at the start and probably get a fine if I do something wrong and that really scares me. I think I would prefer to work with or for someone but I don’t really see myself running my own business any time soon as its just isn’t for me.
I do understand that you can be both employed and self-employed at the same time, so you can work for an employer furring the day and run your own business in the evenings. For example I could be working part time for someone and then on my days off be working on my photography but I just don’t know yet if that would be something I would want to do. Maybe with time I will be able to convince my self but at this moment in time I’m not really convince for self employment.
Magda's Blog 