LJS Accounting Services

How To Register As Self Employed

How To Register As Self Employed

Embarking on the journey of self-employment can be an exciting venture, but the steps involved in registering as self-employed can seem daunting.

There are many reasons why people decide to go self-employed, whether it’s because they want to be their own boss and work for themselves or they simply want more freedom and flexibility. It is because of this that self-employment is becoming increasingly popular.

Throughout this blog, we will be exploring everything you need to know about how you can become self-employed step by step. For more information, read on.


Understanding Self-Employment

Before jumping into the registration process, it’s essential to grasp the concept of self-employment. Being self-employed means you work for yourself and are responsible for managing your business affairs. This includes handling taxes, accounting, and legal obligations.

The first step is determining whether you genuinely qualify as self-employed. If you work for yourself and are not under an employer’s control, providing your services to multiple clients, you likely fall into the self-employed category.

However, it’s crucial to check the criteria HM Revenue & Customs (HMRC) sets to ensure you meet the requirements. There are two main categories that self-employed people fall into, such as owning a business or selling their goods and services.


Getting Your Finances in Order

Organising your finances is paramount. Keep detailed records of your income and expenses to simplify tax calculations. Consider using accounting software or hiring an accountant to streamline the process and avoid any financial hiccups down the road.


Registering with HMRC

Now that you have a better understanding of self-employment, let’s discuss how you can register to become self-employed. To do this, you will need to visit the HMRC website and find the ‘Register for Self-Assessment’ page.

The registration process is relatively straightforward, requiring personal details, your National Insurance number, and information about your self-employment.


Unique Taxpayer Reference (UTR)

Upon successful registration, you’ll receive a Unique Taxpayer Reference (UTR) from HMRC. This serves as your tax reference, so keep it safe. You’ll need it for all your tax-related activities, such as completing a self-assessment tax return.


What is a Self-Assessment Tax Return?

Self Assessment is the system HMRC uses to collect income tax. As a self-employed individual, you’re required to complete an annual tax return, detailing your income, expenses, and profits. Be sure to stay on top of deadlines to avoid penalties.

If you feel like you struggle to stay on top of your paperwork and bookkeeping, we at LJS Accounting Services can help.

We can return and submit your tax returns, control your bookkeeping and records to ensure they comply with HMRC, provide you with training to help you stay on top of your paperwork, and much more.


Stay on Top of Records and Invoices

Maintaining detailed records is crucial for a hassle-free tax season. Complete and keep track of your invoices, receipts, and any other relevant documents. This not only ensures accurate tax filings but also allows for a smoother auditing process if ever required.


You Are Responsible For Paying Taxes

As a self-employed individual, it’s your responsibility to pay your taxes. The HMRC will provide you with a breakdown of your payments based on the information you provide in your self-assessment tax return. Be diligent in meeting payment deadlines to avoid fines.


Seek Professional Advice

Seeking professional advice can be very beneficial especially if you are newly self-employed. An accountant can guide you through the complexities of tax regulations, provide valuable financial advice, and ultimately save you time and money.


VAT Registration (if applicable):

If your annual turnover exceeds the VAT threshold, currently set at £85,000, you’ll need to register for VAT. This involves an additional set of responsibilities, such as charging VAT on your services and submitting quarterly VAT returns.

Familiarise yourself with the VAT rules and obligations or consult with a professional to ensure compliance.


Stay up to Date With Changes

Tax regulations and self-employment guidelines can evolve, so it’s crucial to stay informed and up-to-date with any changes.

Regularly check the HMRC website, attend relevant workshops, and subscribe to updates to keep up-to-date with any changes that may impact your self-employment journey.

Becoming self-employed is a significant step, and navigating the process doesn’t have to be overwhelming.

By understanding the fundamentals, keeping records, and seeking professional advice when needed, you can simplify the registration process and set the stage for a successful self-employment journey.

Embrace the freedom and flexibility that self-employment offers, and let this guide be your companion as you tackle this exciting adventure.

Here at LJS Accounting Services, we can help you deal with your personal tax to ensure you send your tax returns on time and in line with HMRC. This is important to ensure you avoid any fines or penalties.

For more information on the services we offer or to speak to a member of our team, don’t hesitate to contact us today. We are more than happy to help!

Have You Got Any Questions?

Need to talk to someone? Get in touch with one of our consultants today and we will be happy to help.
Share post:
Want To Work With Us?

Need to talk to someone? Get in touch with one of our expert accountants today and we will be happy to help you with your matter.