Do I Need To Register Business Name Self Employed

Whether you've already started working for yourself, want to make the 'leap' or are eager to gear up a concern by turning a hobby into a fully-fledged business concern, and so I'chiliad certain that the thought of how to register every bit cocky-employed is lurking somewhere at the back of your mind!

In this guide, I'll show you how y'all can make things official with HMRC. In improver, I'll share the v steps you demand to accept and some advice about what you can wait to happen next. I'll likewise outline your legal responsibilities in one case you are signed up to become cocky-employed when yous register with HMRC.

This guide is written for individuals who want to register equally UK cocky-employed. There are other business organization structures bachelor such every bit Limited Visitor, Partnerships and LLPs and you lot can notice out more than about these in this guide 'what business organisation structure is correct for you'.

Updated 26 January 2022

1. Who Needs to Register as Self-Employed in the United kingdom
2. When To Register as Self-Employed
3. Data You Need To Take Set up
four. How to Annals equally Self Employed in the Britain
- 4.1 How to Annals Online
- 4.2 How to Register by Phone
v. Applying for Cocky Employment if Y'all Are Already Registered for Self-Assessment (CWF1)
- v.1 Completing the CWF1 Class Online
- five.2 How to Notice the CWF1 Form Online
six. How Long Does information technology Take for HMRC to Process Your Application
vii. What Happens Next
viii. Contacting HMRC About Your Application
9. Key Takeaways

Friendly Disclaimer: Whilst I am an accountant, I'm not your auditor. The information in this article is legally correct only it is for guidance and information purposes only. Everyone's situation is different and unique so you lot'll need to use your ain best judgement when applying the communication that I give to your situation. If you lot are unsure or have a question be sure to contact a qualified professional considering mistakes tin result in penalties.

1. Who Needs to Register every bit Self-Employed in the UK

Firstly, it pays to check whether you actually demand to register with HMRC considering not anybody needs to. Avoiding registering tin save you lot a lot of hassle! When you work for yourself you'll need to use for cocky employment once your business income (not profit) is £i,000 or more during a single revenue enhancement year.

That doesn't mean you shouldn't annals if yous are earning less than £1,000. In fact, many people choose to use anyway because they:

expect their turnover to increase beyond this;
don't want to miss the registration borderline and avoid whatsoever potential HMRC penalties;
desire to lock in a tax saving in future years by recording a taxation loss to employ against future profits.

Actually, HMRC's recommended approach is that anybody should register for self assessment once they start working for themselves. This is regardless of how much you lot earn. The £1,000 exemption is actually just designed for people who practice odd jobs, such as babysitting or sell small amounts through eBay or car boot sales, for example.

2. When To Annals as Self-Employed

The borderline to register as cocky-employed is the 5th Oct in your business' 2nd tax year. Therefore, if you started working for yourself on ane March 2020, you lot'll need to register by five October 2020 and there are penalties for missing it.

When To Register equally Self-Employed

3. Information You Demand To Take Set up

Registering with HMRC will be easier if yous accept the information you need to hand. Here's what you lot should accept:

Name
Date of Birth
UK Address
National Insurance Number
Telephone number
Email accost
Business start date
A brief description of what you do

4. How to Register as Self Employed in the Great britain

Registering is simple plenty to do yourself and in one case completed you'll expect to:

Get a UTR number, by post
Receive an activation code to enter into your government gateway business relationship so you can file your SA100 taxation return, also by postal service

But let's start at the beginning. The easiest way to apply information technology is to either:

Get Online or;
Telephone HMRC.

4.1 How to Register Online

Earlier you outset applying online, make sure you have your National Insurance number handy. You lot'll then demand to complete the post-obit 5 steps:

Visit the HMRC website and cull the option to "Register Online";
Prepare your HMRC online account and so y'all can manage your taxes online;
Enrol for self cess online;
Wait for your UTR number which is posted to you. This can take upward to 10 days.
Await for your activation code and then y'all tin complete setup of your HMRC online business relationship (can take vii – 10 days).

v Steps to Registering equally United kingdom Self-Employed

Visit the HMRC website
Head over to the HMRC website and choose the option to "Register Online"
Fix a Regime Gateway Business relationship
This is the account where you lot'll manage all your taxes. HMRC volition automatically generate a 12 digit number which y'all'll need to user equally your login and let you choose a password.
Enrol for Self Assessment
Complete the HMRC class to register for HMRC taxes. Yous'll need to share your personal information, details about the work you lot will do once you are gear up upwardly as self employed and brand a declaration that everything you have entered it true.
Await for HMRC to Review Your Application
HMRC will review your awarding one time y'all submit information technology. Inside the side by side 10 days they will send you out a UTR number to be posted to you (can take upward to ten days). It's a ten digit ID number that you'll need to go along safe in the event yous need to show you lot are a sole trader, speak with HMRC and manage your self employed taxes.
Enter Your Activation Code
Finally, you'll as well be sent an activation lawmaking for your government gateway business relationship as part of the verification process. It can have up to 28 days for this to be sent but make sure you enter it as soon as you receive it because it will expire.
What Happens Next
In one case registered with HMRC, you'll demand to manage your own taxes which means declaring your income once a year on a tax return and paying any tax y'all owe twice a yr.

4.ii How to Register by Phone

You can employ to register as self-employed past phone by calling HMRC on 0300 200 3500. HMRC's opening times are equally follows:

Mon to Friday: 8am to 8pm
Sabbatum: 8am to 4pm

5. Applying for Cocky Employment if You lot Are Already Registered for Self-Cess (CWF1)

If you already fill in a tax return for another reason, for example, because you are a landlord or have dividend income, and so you should not utilise for self-employment again. If yous register again, HMRC volition gear up you upward on their organization for a second time and expect two tax returns from you! Instead, you should consummate a CWF1 Class online.

five.1 Completing the CWF1 Grade Online

You'll need certain information to complete the course online so that HMRC can tie upwardly your application to the correct person. Here'south what you need to have ready:

National Insurance Number;
UTR number (here's how y'all tin can find your UTR number).
Personal details (proper noun, accost and phone number);
Details of the business organization (proper name, address, the blazon of work).

5.2 How to Find the CWF1 Form Online

Head over to the HMRC website where you can find the latest version of the 2019/2020 CWF1 form online. It is fairly straightforward to fill out and you accept the opportunity to review the form before you submit it.

half dozen. How Long Does information technology Take for HMRC to Process Your Awarding

HMRC'southward guidance says the self-employment registration procedure takes 7 – 10 days to consummate. Notwithstanding, at that place can be delays with these timescales. To go an up-to-appointment estimate of how long your application volition have, yous can telephone call HMRC on 0300 200 3310.

You'll demand to wait for 2 things:

An activation lawmaking to complete the setup of your HMRC Authorities Gateway business relationship;
A UTR number that completes your registration.

7. What Happens Side by side

One time you have successfully applied for self-employment, y'all'll receive a UTR number to make it official and y'all'll demand to follow the rules of cocky-cess. This includes tracking your income and expenses, filling in a revenue enhancement render and paying tax on your earnings. You can read more about what you need to exercise in my beginners guide to going cocky-employed. Information technology contains more data on registration, depository financial institution accounts and reporting your earnings forth with other useful info yous need to know as you embark on your journeying to be your ain boss.

If you have a question almost your application or think you take made a error then you should phone call HMRC on 0300 200 3310.

9. Key Takeaways

The deadline to register with HMRC as UK self-employed is 5th Oct following the end of the tax twelvemonth yous started working for yourself;
You can apply for your cocky employment registration online or by telephone. Either way, you lot'll need to look for your UTR number and activation code. These are posted to you to complete your registration;
If you're already registered for self assessment for another reason then you'll need to consummate a CWF1 form instead of completing a full application otherwise HMRC will expect 2 revenue enhancement returns from you lot.

Related:

Am I Considered Self-Employed?
The Trading Income Assart Explained
HMRC Cocky Assessment Explained
Self-Employed Taxation Explained
Self Employed Expenses Explained

Taxes are irresolute! From April 2024 sole traders will need to report their earnings and pay revenue enhancement on a quarterly footing. This is known equally Making Taxation Digital, which yous can read more about in thisguide to assistance you get prepared.