What is the difference between being self-employed and having a business?

Question

By being self employed, does that mean I have a business in my name? Also when opening a bank account to be paid into does this need to be a business account for self emplyed people (UK based question)

Answer 1

self employed and running ones own business go hand in hand

Answer 2

Being self employed can mean operating as a "sole-trader".  Working this way you are personally paid by your client.  You need to pay your own national insurance and tax, but that is all.  Bank accounts can be those of the individual.

Limited company ownership means that you are the managing director of a separate legal entity, "the company".  

(A company must comprise of 2 or more people and must have a registered address).

The client of a company pays the company, not the individual.

It is the responsibility of the company to attend to the pay of its members as it deems appropriate.

There are other requirements of a company.  The managing director must convene an Annual General Meeting (AGM) every year.  The minutes of this meeting, along with the company returns and accounts must be filed with Companies House on a regular basis.

Bank accounts must be in the business name and hence must be business accounts.

Limited companies are only taxed on their profits, so any legitimate business expense can be off set against tax.

Answer 3

Just means you are continually skint because the government just takes,takes,takes all the time with little or no encouragement to help the self employed who own small businesses,,,,

Answer 4

The way I see it is: If you are self employed, you work just for yourself. If you run a business , you are the boss and the buck stops there. You hire and fire as you see fit, whereas as a self employed man you only have to answer to yourself!