Obligations of working independently.
WHAT TYPICALLY APPLIES
Registration as a business or self-employed person Income tax on profits Consumption tax registration, above thresholds Records of income and expenditure Filing and payment deadlines
WHAT TO ESTABLISH
What applies where you live, and from when.
WHY EARLY
Registering late attracts penalties and it complicates matters.
WHAT TO DECIDE
Whether to operate as an individual or through a company.
WHAT AN INDIVIDUAL ARRANGEMENT PROVIDES
Simplicity and low cost.
WHAT A COMPANY PROVIDES
Separation, credibility with larger clients, and sometimes tax differences.
WHAT IT COSTS
Filing obligations, accounts and administration.
WHAT TO ESTABLISH
Whether your clients require a registered company.
WHY
Some organisations will not engage individuals.
WHAT RECORDS TO KEEP
Every invoice issued Every payment received Every business expense, with evidence Bank statements
WHY EXPENSE EVIDENCE
Deductions without documentation are disallowed.
WHAT EXPENSES TYPICALLY QUALIFY
Equipment and software Workspace costs, proportionally Travel for work Professional development Professional fees and subscriptions Communication and connectivity
WHAT TO ESTABLISH
What is genuinely deductible in your jurisdiction.
WHAT TO SEPARATE
Business and personal money.
WHY
Mixed accounts make records unreliable and deductions indefensible.
WHAT TO ESTABLISH
A separate account for business income and expenditure.
WHAT TO CONSIDER
An accountant, at least for annual filing.
WHY
The cost is usually less than the errors.
