Self-employment ― overview

Produced by Tolley

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Self-employment ― overview
  • Meaning of a sole trader
  • Tax treatment of partnerships
  • Self-employment ― further tax guidance

Self-employment ― overview

Meaning of a sole trader

When an individual starts to work for themselves on their own they are self-employed and classified as a sole trader. The likely characteristics are:

  1. the person sells goods or services to make a profit

  2. the person takes responsibility for the success or failure of the business

  3. they will have several customers or clients they are working for at the same time

  4. they can hire other people to work in the business and pay them out of the profits of the business

  5. items of equipment used in the business are provided by the individual

  6. the responsibility for correcting any defe

Popular documents