So you’ve decided to become a sole trader, to spread your wings and be master of your own destiny. But as a sole trader it is worth noting that you are responsible for your own taxes and registering with HMRC for Self Assessment is an important step you mustn’t miss when you begin to work for yourself .
Register Online with HMRC
As part of setting up your business you must let HMRC know that you are in business for yourself, you can do that online here.
Once this process is completed HMRC will send you a UTR number (Unique Tax Payers Reference). Keep this safe as you will need this code to file your Self Assessment Tax Return and to set up a Government Gateway Account so you can file your personal tax return online.
When Should You Register?
The registration process takes around 10 days but I would advise registering ass soon as possible so that you give yourself enough time to keep all your tax affairs in order. The official guidance from HMRC is that you should make sure you are registered by 5th October in your second tax year.
What Details Do You Need?
As part of the application you will need to provide various pieces of personal information including:
- Date of Birth
- National Insurance Number
- Telephone number
- Email address
- Some details of your business type