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If you start working for yourself, you're classed as a sole trader - even if you've not yet told HM Revenue and Customs.

You must register and follow rules for self-employed tax and National Insurance.

Other ways to work for yourself

Instead of being a sole trader, you might find that a different legal structure is better for your business.

You can:

become a partner in a business partnership

set up your own limited company

If you set up a limited company, you're not classed as self-employed but as both an owner and employee of your company. You'll follow different rules on tax and National Insurance.