When do I need to register as Self-Employed?

In the UK, You are legally required to register as self-employed once the money you get paid (not your profit) goes over £1,000 during a tax year. Below this amount, you can avoid letting HMRC know about your business and paying any tax. This tax-free amount, otherwise called the trading income allowance, isn’t always appropriate to use. Therefore, make sure you do your research before you claim it.

Registering as self-employed means that you are responsible for paying your own taxes and National Insurance contributions, rather than having them deducted from your pay by an employer.

There is no specific deadline for registering as self-employed, but you should do so as soon as possible after starting your self-employment business if you expect to earn over £1,000 (turnover( within the tax year. You may be required to pay a penalty if you fail to register within three months of starting your business.

To register as self-employed, you will need to complete a registration form and provide some information about your business, such as your business name and contact details, the type of work you do, and your estimated income for the current tax year. You can register as self-employed online through the HMRC website or by phone.

Register for Self Assessment Here

Once you have registered, you will receive a UTR (unique tax reference) number through the post, keep this number safe as is it is unique to you.

It’s important to keep good records of your income and expenses, as you will need to use these to complete your Self Assessment tax return each year. This will help you to accurately report your profits and pay the correct amount of tax.

A tax year runs from the 6th of April to the 5th of April of the following year. You then have until 31st January of the following year to complete and submit your self-assessment, and pay any Tax plus national insurance due, over to HMRC.

Example:

  • You started and registered for self-employment in May 2022
  • Your tax year will be 6th April 2022 – 5th April 2023
  • You can submit your self assessment anytime from the 6th of April 2023 and the 31st of January 2024
  • Any tax and national insurance due to HMRC will need to be paid by the 31st of January 2024
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