* Someone who is self-employed is the owner of a business, an individual who earns a living by working for himself/herself and not as an employee of someone else.
* You will become responsible for calculating and paying your own tax and National Insurance liabilities. This means that you will need to complete and submit a self-assessment tax return to HMRC every year.
* The amount of tax you will have to pay depends on how much money you’ve made: the tax-free personal allowance and the tax bands are the same for self-employed and employed people. The way you currently report income is by completing a tax return form under the self assessment system.
* You must keep records of your business income and expenses for your tax return.
* Please note that you can combine the status of self-employed entrepreneur with your studies or with a long term contract. The self employed status was created for people wishing to gain additional income and some people make it their full-time activity as well 🙌.