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WorksheetsTax Basics
Total questions: 10
Worksheet time: 7mins
Sole trader or limited company? Which of these statements refer to sole traders?
Have to register the business with Companies House
HMRC treats the owner and the business as one entity, therefore you/your possessions are at risk if the business falls into debt
HMRC treats the owner and the business as two separate entities – there is a legal distinction between you and your business
Greater privacy, as your accounts are not in the public domain
Quicker and cheaper to set up and you only have to file your annual self-assessment
Which organisation do we pay our taxes to?
DWP
Inland Revenue
HMRC
When does the tax year start and end?
6th April – 5th April
1st January – 31st December
1st April – 31st March
By which date do you have to submit your online tax return?
31st January
31st March
31st December
For tax purposes, how long do you have to keep records (invoices, receipts etc)?
10 years
7 years
6 years
How much can I earn from my business before I have to declare it to HMRC?
£100
£500
£1000
My business will be eligible to pay VAT when my turnover reaches…
£50,000
£85,000
£100,000
Any money I make from my business must be kept in a business bank account
True
False
I will need special (separate) insurance as a self-employed person
True
False
When I start my business, as a sole trader, I will have to submit my tax return through an accountant
True
False
