|
Comprehensive Online Business Insurance - Tailored PI, Office, Public and Employers' Liability Insurance. - Are you covered? Read our Essential PI Guide. - Get a Quote and buy online in minutes. |
How to register as Self Employed | |
The fastest way to get into business is to become a self-employed sole trader. There’s very little paperwork involved and no fees or other charges to pay.
But you can’t simple declare yourself as self-employed. You do need to formally register, and take responsibility for paying your own tax and National Insurance.
Here are the steps you must take to get started properly.
Pick a name
What are you going to call your business? For many new entrepreneurs, this is the most exciting start-up task and one that lots of time is spent on!
Some people simply trade under their own name, or say they are Your Name trading as Business Name. Don’t forget to check that no-one else is using the name – a quick Google search will help you. There’s no register of business names used by self-employed people, but you can check the Companies House register of limited companies.
Tell Her Majesty’s Revenue and Customs
HMRC requires that you notify them within three months of becoming self-employed. This is easy to do, either by filling out the online form or phoning 0845 9000 444.
Don’t forget though, or you will be fined £100.
Once you become self-employed you will pay tax each year by filling out a tax return and self-assessing how much you owe. A smart move is to keep tax money aside in a separate account from day one – then you will never find yourself scrabbling to meet a payment. Your accountant will advise how much you can expect to pay.
You will also be responsible for paying your own Class 2 National Insurance contributions, currently £2.20 a week. You will pay extra Class 4 contributions on profits you make over £5,225 – again, consult your accountant for advice specific to you.
Register for VAT
If you turnover more than £67,000 (from 1/4/2008 - previously it was £64,000) in a rolling 12 month period you will be liable to pay VAT, even as a self-employed person. So keep an eye on how well your new business is doing. As soon as you do pass the limit, you have 30 days to register with HMRC.
Other licences
With some types of business, you need to get a licence before you can start working. For example if you want to set up as a taxi driver you will need to apply for a licence from your local authority.
It’s the same for many other types of work, including being a childminder, running a restaurant or pub, or being a market trader. And to get a licence, you will typically have to do some specific training and gain relevant qualifications. You may also have to go through an inspection to ensure your business is shipshape and legal.
Posted January 21, 2008
| Our Partners |
|
Hiscox Office Insurance Instant Online Quotation Bibby Financial Services Funding your business Cashflow Problems? Try Invoice Financing Save on Car Rental Discounts with Budget Public Liability Insurance Get online cover now Company Information Online credit checking 2 Years FREE Banking Alliance & Leicester Company Formation Instant online setup! |
| Key Services |
|
£20 Free Postage & 30 Day No Ties Trial SEO-friendly website for just £200 Virtual Office Service For full details click here. FREE Call Answering Hot Office - More info |
| Start Up Services |
