is it necessary to set up as sole trader

Hi admin, I am a self-employed freelancer and have an unlimited company in Hong Kong which takes Hong Kong freelance jobs, but I live and work from home in the UK. And I don't have local employment here. I have registered for self-assessment tax return and intend to report my foreign income. 1) Is it necessary for me to set up as sole trader? If not, am I still eligible to claim the expenses relating to my work? 2) If my foreign income is already reported in Hong Kong but not taxed after deducting all the allowance (so I paid 0 tax in Hong Kong), do I still have to fill in the tax relief claim form? 3) For my case, would you please clarify which form(s) I need to fill in for tax return? Thanks a lot.

Hi,

Yes, you need to register for Self Assessment and declare this income as self employed sole trader. Please refer to.

Tax on foreign income

Expenses if you're self-employed

Thank you.

Thanks for the reply. As I was trying to fill in the form, I was asked to input a business name. Does it mean I'm opening a company or it's just a name? Is it a must to set up a company for self-employment? And the problem is most of my self-employment business now is only generating foreign income, which I should input under "foreign income" after using exchange rates. In that case I'll have almost nothing to put under "business income". Is this correct to fill in UK and non-UK income separately, if both are self-employment? If my foreign income is already reported in Hong Kong but not taxed after deducting all the allowance (so I paid 0 tax in Hong Kong), do I still have to fill in the tax relief claim form? Thanks again.

Hi
The business name is normally your own name as you work for yourself.

Hi admins, I am a self-employed courier for the parcel company. I am confused about set up as sole trader. Is it mandatory? My work it doesn’t include trading and selling. Regards

If you work from UK, you must register for self assessment and submit your tax return to HMRC every year. As per HMRC you must report foreign income through self assessment even you paid tax in the foreign country.

Hi Jisjac,

Yes, if your gross turnover is over £1000. You can see guidance here:

Working for yourself

Thank you.