Drawings

Business Structure Review

The 123 Way

What is included as standard for a fixed fee of £65.00 + vat per month:

Full Contracting health check - is your business performing as best it could - we'll ensure it is.

If you're new to freelance contracting, we'll ensure you start trading in the right way.

Then you can sit back and relax, your ongoing HMRC & Companies House compliance will be taken care of.

The 123 Way - simple & stress-free.

As a Sole Trader you will not be paying yourself a salary as such. Instead when you take money from your business account and transfer it to your personal, it is known as your Drawings, i.e. the money you have drawn from the business.

This money does not effect your business tax - it does not reduce it like a salary would if you were a director of a Limited Company (one of the advantages of incorporating).

Many Sole Traders set themselves up and use their personal bank account for all business and personal expenses and income. This is very bad practice as it is very difficult for your accountant to tell what expenses are personal and which are business. You therefore often end up paying too much tax as business expenses are mistaken for personal ones.

Even though it might seem a little strange to set up a business current account, pay your income into it and then transfer it straight across to your personal account - it will save you a great deal of time, hassle and money if you do it this way.

Running a Limited Company

Being a Sole Trader

Responsibilities

Business Bank Account

Drawings

Bookkeeping & Records

Trading Accounts

Business Tax

VAT - The Basics

VAT - The Choices

123 Income Illustrator

The 123 Income Illustrator shows you what you can expect to take home from a given contract.

It also compares the differences between freelance contracting through your own Limited Company, through an Umbrella Company, as a Sole Trader or if you were to return to full time employment.

The123 Income Illustrator

Invoicing

Expenses

Expenses - Detailed Guide P1

Expenses - Detailed Guide P2

Personal Tax/Self Assessment

Importance of Information

Important Dates

Calculators

123 Referral

We run a simple referral programme where for every client you refer to The 123 Way we will give you £123.00

For more information check out the link below:

123 Referral

FAQs

Disclaimer:
This information is for general information only. No responsibility is taken for any action taken or refrained from in consequence of its contents. Always seek professional advice before acting.