Starting your own business or side hustle is an exciting journey! One of the first steps for any budding entrepreneur in the UK is registering as self-employed with HMRC. It might sound daunting, but it’s actually a straightforward process. To make it even easier, we’ve outlined the key steps and included a helpful video for you to follow.
Watch the video here: How to Register as Self-Employed with HMRC
Step-by-Step Guide:
1 – Understand Your Responsibility
If you’re earning money from self-employment, it’s important to inform HMRC. This includes freelancers, small business owners, and those with side gigs. You need to register by October 5th after the end of the tax year in which you started working for yourself.
2 – Gather the Information You’ll Need
Before starting, make sure you have:
- Your personal details (name, address, date of birth)
- National Insurance Number
- Details of your business (name, nature of business, start date)
3 – Create a Government Gateway Account
Head to the HMRC website and sign up for a Government Gateway account if you don’t already have one. This account will give you access to essential tax tools and correspondence.
4 – Register as Self-Employed
- Log in to your Government Gateway account.
- Select the option to register as self-employed or set up as a sole trader.
- Complete the online form with your details.
5 – Receive Your UTR (Unique Taxpayer Reference)
After registering, HMRC will send you a 10-digit UTR number. Keep this safe! It’s essential for submitting your Self Assessment tax returns.
6 – Keep Records of Your Income and Expenses
Once registered, it’s crucial to maintain accurate records of your business income and expenses. This will make tax season much easier and ensure you’re paying the correct amount.
Why It’s Worth Doing Early
Registering as self-employed on time helps you avoid fines and ensures you’re set up to manage your taxes. Plus, once you’ve registered, you can focus on growing your business without worrying about compliance.
For a detailed walkthrough, check out the video linked above—it’s a great visual guide to help you through the process.
