Registering as self employed
HMRC have updated their guidance for anyone who becomes self employed or a partner in a partnership. Newly self-employed taxpayers should notify HMRC as soon as they begin working for themselves to avoid penalties for late notification. In partnerships and LLPs each partner has to register personally.
You can register as self-employed either by telephone or online. In addition to your basic personal data you will need to supply your National Insurance number, the date your self employment started, the nature of the business, the business address and your Unique Tax Reference (UTR) if you have one. If you have joined a partnership you will need to supply relevant details of the partnership.
The newly self-employed must also register to pay Class 2 National Insurance contributions (NICs) by completing form CA5601 unless earnings are below the Small Earnings Exception (currently £5,075 for the tax year 6 April 2009 – 5 April 2010).
You will also need to determine whether to register for VAT – bearing in mind that it can be advantageous in some cases to do this immediately even if you do not anticipate your turnover reaching the formal registration limit.