New to self-employment

tommytynan123

Hi
I work part-time on PAYE and about to leap into self-employment as a freelance tutor alongside my p/t job. I'm aware that step one is to register with HMRC and as it's initially just me I can trade under my own name.
Long term plan (over next 6 - 12 months) is to create a small training company (possibly a CIC) and have my own small bank of tutors. I don't have a name yet for the company so my question is can I add a name later and remove my own name as the trading name or is it 2 separate transactions.
Thanks

Neil_Jones

For the sole trader route you can just have Fred Bloggs trading as Tudors R Us but CICs (Community Interest Company) have to be limited companies and have other criteria you need to meet before you can set one up.

If you want to freelance as a tutor (in what?) for profit, a CIC ain't going to do it as those are generally not-for-profit. Sole Trader or your regular Limited Company may be the way to go.

Sarastro

Why are you going down the CIC route?

Your status and the company status aren't the same legal things so you can't 'change' yourself into a limited company and change the name later. You have to set up a limited company with it's own name (which might be remarkably similar to your own!). Presumably you would then start putting your fees through the company, rather than being self-employed (although can you be self-employed and a company director, but then there's no point having the company). Please think very carefully about the business model you are creating. Are the 'bank' of tutors going to work for you? Or will they be self-employed and invoicing you? Can they work privately, or do they have to work certain hours for you? If you set their hours, HMRC may consider them employees and you will be liable for NIC, etc.