SADDLE: LO5 KNOW THE LEGAL REQUIREMENTS FOR SELF-EMPLOYED D1

What is the main benefit of becoming self-employed?

• Ease of starting and running a business

• Higher profits compared to other types of business ownership

• Less responsibility for business debts

• Ability to work from home

What is the simplest form of business ownership?

• Limited company

• Partnership

• Sole trader

• Publicly traded company

Who is responsible for all the business's debts in a sole trader business?

• The government

• The employees

• The customers

• The sole trader

What happens to a sole trader business after the retirement or death of the owner?

• It continues to operate under new ownership

• It is automatically converted into a limited company

• It is dissolved and ceases to exist

• It becomes a partnership

When is a sole trader required to register for VAT?

• When the annual turnover exceeds £100,000

• When the annual turnover exceeds £50,000

• When the annual turnover exceeds £90,000

• When the annual turnover exceeds £200,000

Is it a legal requirement for a self-employed person to have a separate business bank account?

• Yes, it is mandatory

• No, it is optional

• Only if the business has employees

• Only if the business is registered as a limited company

When should a person register as self-employed with HMRC?

• Within 30 days of starting the business

• By 31 October of the first tax year

• By 5 October of the second tax year

• Anytime before the end of the tax year

What is the deadline for submitting a self-assessment tax return online?

• 31 October

• 31 December

• 31 January

• 28 February

What is the tax-free personal allowance for the 2024/5 tax year?

• £10,000

• £11,000

• £12,000

• £12,570

What are payments on account in the context of self-assessment tax?

• Advance payments for the current tax year

• Payments made to employees

• Payments made to suppliers

• Payments made to HMRC for previous tax years