Sole Trader earnings query

[pranjam]

Hi,

I have got a part time job to boost my income as an IT contractor. My accountant has advised me to go for the sole trader route.

My query is regarding the self employed section in the TIER 1 guidelines. I am a contractor registered as self employed and working as a sole trader part time in addition to my normal job.

Will I be asked to have a business account just because I am self employed or because I am not operating through a company I can show my earnings just through my personal account.

Any ideas anyways please

[mvent00]

Hi,

I have got a part time job to boost my income as an IT contractor. My accountant has advised me to go for the sole trader route.

My query is regarding the self employed section in the TIER 1 guidelines. I am a contractor registered as self employed and working as a sole trader part time in addition to my normal job.

Will I be asked to have a business account just because I am self employed or because I am not operating through a company I can show my earnings just through my personal account.

Any ideas anyways please

No need of business account, contractor can provide personal bank statements + accountant letter. http://www.ukba.homeoffice.gov.uk/sitec ... 310309.pdf page 27 of 44.

[Sushil-ACCA]

accoutant os good but not expert in tax liability

if u form a company tax liability will be 21 % and in sole trader NI will be extra depende on yr income

[HSK Accountancy Services]

accoutant os good but not expert in tax liability

if u form a company tax liability will be 21 % and in sole trader NI will be extra depende on yr income

It depends which accountant you used. There are some non-qualified people calling themself 'accountants' but they are not more than a book-keeper.

Operating through a Limited Company is certainly a most efficient way of tax saving if you are not caught by IR35 .

@Pranjam- You dont need to show your business accounts unless you wanted to show your business income as a proof of your earnings. Going through limited company isntead of sole trader is a safer route and then you always pay yourself as much salary as you want depending on how much you require to get the points.

Hope that is helpful.

Cheers