Great Britain is considered one of the best states to drive business, this is one of the leading financial and business centers in the world Establishing and running a business here is very prestigious, quite easy, profitable, and relatively inexpensive.
The easiest way to start your own business in Great Britain is to register as an individual entrepreneur (Sole Trader / Self-employment).
IE in Great Britain is suitable for different entrepreneurial ideas and scripts: for small businesses and startups, freelance and consulting, trade and retail, online business, and e-commerce commerce. That is, IE is suitable for small businesses with small turnover and one owner.
Why are you interested registration of an IE in Great Britain?
IE has a number of advantages:
- Simplicity and speed registration: Process registration of IE in Great Britain is relatively simple and can be done online saving time and effort.
- Flexibility in management: As an individual entrepreneur, you will have full control over the business, acceptance solutions, and profit.
- Absence of minimum authorized capital: In Great Britain, there are no requirements for the minimum authorized capital that simplifies the process of creation and launch of a business.
- Easy accounting reporting: Reporting for IE in Great Britain is usually less complicated compared to other forms of business. It may save your resources and simplify financial management.
- Tax benefits: There are different tax benefits and opportunities for IE in Great Britain, including the application of different tax rates and deductions.
- Access to international markets: Great Britain provides relatively easy access to international markets that can be useful for the development of your business.
- Reputation and trust: Great Britain is famous for its entrepreneurial climate and business infrastructure which may promote trust from customers and partners.
Of course, any form of entrepreneurship has its shortcomings, and IE in Great Britain is no exception.
Here are a few potential disadvantages:
- personal liability: As an individual entrepreneur you don’t share responsibility with other partners. It means that you are personally responsible for debts and obligations of your business that can be risky.
- Limited access to capital: Opportunities involve capital limited because your financial resource is limited by your personal situation and income.
- Tax obligation: Although the tax system can be beneficial, sometimes individual entrepreneurs face high tax rates.
- limited anonymity: IE in Great Britain carries the obligation to give reports and information that is public.
Term registration: you can register an IE until October 5 of the year in which it expires tax the year in which you have become an IE. For example, if you opened a sole proprietorship and started working as a confectioner in May 2022, then they should register by October 5, 2023.
Registering an IE in Great Britain is completely an achievable goal.
We will explain below step-by-step instructions on how to do correctly all actions.
Make sure that you have all necessary documents, including a passport, residential address, business plan your companies, etc.
Decide what form of legal structure of the IE you want to choose in Great Britain, the popular form is ” sole trader ” (individual entrepreneur).
Fill out the online application form on the official website HM Revenue website and Customs (HMRC) or contact professionals who will fill it out correctly for this application.
Obtaining a payer number of taxes
After successful registration, you will receive a unique number of the payer taxes (UTR).
Accounting HMRC record
Create an accounting HMRC record to manage your tax affairs obligations.
Open a bank account for your company.
Important: Necessarily adhere to everyone’s tax obligations such as payment income tax and VAT, if applied Tax declarations should be submitted by January 31 of the year following the reporting year. reportable period is defined individually, depending on give registration.
You can’t bypass the question of taxes for private individuals. If your income is less than £12,750, it is not taxed.
Further works losing rate on income.
- £0 up to £12,570 you pay no income tax
- 20% – £12,571 to £50,270
- 40% – £50,001 to £150,000
- 45% – above £150,000
IE also has to pay national insurance contributions (National insurance contributions), of which there are two types: class 2 when the income is £6,725 or more per year. Class 4 if your income is £11,909 or more per year.
Importantly carefully evaluate their needs and goals business to determine whether IE meets your requirements, so it is recommended to get a consultation from our lawyer to avoid possible problems and quickly start your own activity