A contract undertaken by a self-employed individual, distinguishing it from a contract of employment. Understanding the distinction is crucial for tax purposes.
Individuals who independently operate their trades or businesses and are taxed based on their profits rather than through PAYE, with unique National Insurance contributions compared to employees.
Self-employment income refers to the earnings generated by individuals who work for themselves rather than being employed by a company or organization. This income is subject to Social Security taxes if the net profit from the trade or business is at least $400 for the year. In some cases, earnings less than $400 might still be considered for Social Security purposes.
SOHO stands for Small Office/Home Office, which refers to small-scale business setups that operate out of a residential or small commercial space. This term is primarily associated with entrepreneurial ventures, freelancers, and remote workers.
