How to register as a self-employed business owner

by Vidit Agarwal Marketing Director

Who Needs to Register as Self-Employed?

If a person or individual - whether that’s earning extra income in addition to having a job or who is thinking over to start his own business is known as a self-employed or sole trader. You need to register as self-employed with HMRC. All you can do is to register your business name and you can start trading. Before starting yourself as a sole trader, you need to understand the tax and benefits when you are working as a self-employed. If you will not register your-self as a self-employed or freelancer, it may ne you will submit penalties for not paying tax on your income.

How to register as self-employed with HMRC

Anyone who wants to become a self-employed or sole trader must register with HM Revenue & Customs (HMRC) for income tax and National Insurance contributions. Registering yourself as a self-employed online is simple and provides you with a UTR Number (Unique Taxpayer Reference Number, a 10 digit Number) and will enroll you for paying self-assessment taxes online.

Register for a “Government Gateway” account (You need to supply your full name, an address, email).
Add a tax (Select as a self-assessment and add the date you are starting on).
Add your details (Here you need to supply your personal details, National Insurance Number and contact details for whom you want to work)
Add details about your business (Here you need to supply your job title something like "electrician").
Submit your request

However, if you have sent a self-assessment return previously, you will need to complete a CWF1 form. By this you will be register as a self-employed while maintaining the same online account as you previously created with HMRC. Once you have registered with HMRC, HMRC will write you in the end of every tax year to complete a tax return online or a paper tax return.

Original Source at: https://goo.gl/zhMnp3