If you are looking to join the 4.3 million people in the UK who made the jump into self-employment, one of the first things you will need to do is consider how you will pay tax.
This requires you to choose a structure for your new business. The three most popular options are sole proprietorship, general partnership or limited company.
Last year, operating as a sole trader was the most common structure as around 3.2m sole traders accounted for 56% of the UK’s entire private-sector business population.
By comparison, there were 2m actively-trading companies and 384,000 general partnerships, making up 37% and 7% of the business population, respectively. You can also be a limited liability partnership.
Read our January Active Practice Update
Detailed guidance on the different business structures and selecting the best option for you are provided in our latest Active Practice Update.
If you would like to discuss in more detail any of the issues raised in this article with a member of our team, please call 01772 741200