For any individuals looking to take the big step and work for themselves there is lots to do to get yourself set up properly. Registering as Self-Employed and meeting HMRC’s requirements is one of those essential tasks.
It means that you work for yourself, and you get to keep all your earnings, but you are also responsible for all your tax and liabilities. Being self-employed is the same as being a Sole Trader.
To register as a Sole Trader, you need to:
- Find out if your work qualifies as Self-Employed in the HMRC tool before anything else. If your work qualifies as Self-Employed then you must register as a Sole Trader.
- Get your Unique Taxpayer Reference (UTR) number and it usually takes around 10 days for the letter to arrive and will be needed for your tax returns when the tax year ends (Last day of February 2023)
- Once you receive your HMRC Account activation code in a separate letter, after your UTR, you are now fully setup to be able to pay your tax and National Insurance contributions.
There are other things to think about too, like registering for VAT, if you do really well and earn over £85,000 per year. Further down the line you will have to think about your Self-Assessment Tax Return – we can help with all of this to save you time to focus on running your business.
Visit our website to find your local AIMS Accountant. We are Business Accountants for Business People.