Self-employment is the simplest business structure.
Being self-employed (also known as being a sole-trader) means that you work for yourself and are responsible for all aspects of your business including all of the important business decisions.
As a sole trader, you and your business are seen as one entity. You’ll be responsible for maintaining accurate records of your income and expenses and paying taxes on any profits you make via a self assessment.
You’ll also be personally liable for any debts that your business may incur.
Typically, we recommend that if you’re a startup, it will be more tax efficient for you to register as a sole-trader if you’re going to be earning under £50,000 per year.