This means that you are an individual who is self-employed. You will pay income tax through the Self Assessment system, as well as Class 2 and Class 4 National Insurance – and VAT if you reach the registration threshold.

If there are two or more people in your business, you might want to consider a formal deed of partnership. A solicitor will help you with this. Each partner pays income tax, through the Self Assessment system, as well as Class 2 and Class 4 National Insurance – and the business itself pays VAT once you reach the registration threshold.