Self-employment is the simplest form of business in the UK, it is also a great choice for people who want to test their strength in business. And when and how is self employed registration in the UK? What documents are needed and what deadlines do you need to remember? We invite you to our BLOG.
let’s start from the beginning
Self employed, or what exactly?
Self employed is the simplest form of business in the UK. You can set it up only if you are a UK resident, i.e. you stay in this country for at least 183 days a year.
Importantly, if you decide on this form of business, you must be aware that you are responsible with all your assets for any company’s debts.
Nevertheless, it is a very good solution for small businesses or people who want to test their business idea. After self-employed registration at HMRC, accounting is limited to submitting your tax return once a year. Thus, you do not have additional costs and responsibilities and you can focus on developing your business.
IMPORTANT! You can run your business as self employed and work full-time at the same time.
Registration of self employed in the UK – terms
What will you need to submit your company to HMRC?
name and surname and address of residence
NIN number
telephone number and e-mail address
date of birth
business start date
your company address
the type of business you conduct
UTR number – if you have been self employed before (UTR is granted „once for a lifetime” – it is reactivated when resuming activities)
The settlement period for self-employed persons in the UK
If you are already self employed in the UK, you must remember about the annual settlement. Often, especially from people who have just started their business, we are asked the question – when should I settle my accounts?
The tax year in the UK runs from April 6 to April 5 of the following year. You must submit your annual self-assessment if you carried out your business during this period. Importantly even if you did not have any income at that time.
Also, remember that the last day of January is also the last day to pay tax.
Self assessment what documents you will need
To file your annual invoice, you will need all the invoices you have issued to your clients, but also those you have received as a company. These are costs that will lower your income and, consequently, the tax due.
IMPORTANT! You can only count as costs of the company those expenses that are necessary for its functioning.
Additionally, for self assessment settlement you will need a P60 if you worked full-time in a given year, or a P45 if you left the company.
IMPORTANT! If you have income from other sources, e.g. real estate lease, they must also be included in the annual settlement.
