If you start working for yourself, you’re classed as a self-employed sole trader. This is true even if you have not yet told HM Revenue and Customs (HMRC).
As a sole trader, you run your own business as an individual. You can keep all your business’s profits after you have paid tax on them.
You can employ staff. ‘Sole trader’ means you’re responsible for the business, not that you have to work alone.
You’re personally responsible for any losses your business makes.
• send a Self Assessment tax return every year
• pay Income Tax on the profits your business makes
• pay National Insurance