How to register as self-employed in the UK
If you're planning to start working for yourself in the UK, you'll need to register as self-employed with Her Majesty's Revenue and Customs (HMRC). This is a relatively straightforward process, but there are a few things you need to know before you start.
To register as self-employed, you need to create an online account with the Government Gateway. Once you have an account, you can complete the Self-Assessment registration process.
You'll need to provide some basic information about yourself, such as your name, address, and National Insurance number. You'll also need to tell HMRC what type of work you do and when you started working for yourself.
You must register as self-employed by 5 October in your business's second tax year. For example, if you started your business on 21 September 2023, you must register by 5 October 2024.
If you don't register on time, you could be fined. So it's best to sort out your registration as quickly as possible.
What happens after you register as self-employed?
Once you've registered as self-employed, HMRC will send you a Unique Taxpayer Reference (UTR) number. This is a 10-digit number that you'll use to identify yourself on your tax return.
You'll also need to start keeping records of your business income and expenses. This will help you to complete your tax return accurately.
How to pay your taxes as a self-employed person
As a self-employed person, you'll need to pay Income Tax and National Insurance on your earnings. You'll also need to pay Class 2 National Insurance, even if you don't make any profits in a tax year.
You'll need to file a Self Assessment tax return every year. This is where you'll declare your business income and expenses, and calculate how much tax you owe.
Top tips for registering as self-employed
Here are a few top tips for registering as self-employed:
Register as self-employed as soon as you start working for yourself. This will avoid any late registration penalties.
Keep accurate records of your business income and expenses. This will make it easier to complete your tax return.
File your Self Assessment tax return on time. This is usually due by 31 January each year.
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