This is because they may be treated as a sole trading small business unit by the Inland Revenue and hence be ineligible for £7,900 annual exemption, usually applicable to individuals, according to tax experts, the FT reported.
Furthermore, those classified as sole traders could also be forced to pay self-employed national insurance contributions at 8% on trading profits once they exceed the threshold of £4,615 and 1% on anything above £30,940.
There are no concrete rules, but experts say that anyone who trades more than three times a week should ‘watch out’.
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