Before we go through the steps of how to register as self employed, it is first useful to define what being self-employed means.
A self-employed individual is someone who runs their own business and because of that you are responsible for your own tax and National Insurance contributions. Generally, this means that you are not employed by someone else and do not receive a regular salary or wage. You can be both employed and self-employed at the same time, for example if you work for an employer during the day and run your own business in the evenings.
Self-employment can take many different forms, such as being a freelancer, a sole trader, or running a small business. Being self-employed means that you are free to set your own working hours and choose the projects or clients they want to want work with. However, they are means that you are also responsible for managing their own taxes, insurance, and other business expenses.
You should also be able to show that you are in control of your own work and that you are not being directed or controlled by someone else.
Its very easy but can be time consuming to register as self employed. We list below how to apply for a Unique Tax Reference Number (UTR) – registering as self-employed.
To register as self-employed, you need to follow these steps:
- Go to the government website and create a government gateway account. This will allow you to access the self-assessment tax return system.
- Once you have created your account, log in and complete the online registration form for self-employment. This will require you to provide some basic information about your business, such as your name, contact details, and the type of work you do.
- After you have completed the online registration form, you will receive a letter from HMRC with your unique taxpayer reference (UTR) number. This number is important, as you will need it to file your self-assessment tax return.
- Once you have received your UTR number, you can start to record your income and expenses in a self-employed accounts book or using a bookkeeping software. You will need to do this so that you can accurately calculate your profit or loss when it comes time to file your tax return.
- Finally, you will need to file a self-assessment tax return every year to declare your income and pay any taxes that are due. The deadline for filing your tax return is usually 31 January, but this may vary depending on your circumstances.
It is important to note that, as a self-employed individual, you are responsible for paying your own taxes and National Insurance contributions. You should make sure to set aside enough money to cover these costs, as failure to pay your taxes on time could result in penalties and interest charges.
If you need any help to register as self employed or help filing your self assessment tax returns, then please do not hesitate to contact us.