From understanding expenses to starting a limited company, our downloadable business guides can help you.
If you’re planning on removing yourself from the rat race and registering yourself as self-employed, then there are some boxes you need to tick to make sure you stay in HMRC’s good books.
Failing to do so will not only make your life more difficult, but it’ll also bring the risk of hefty financial penalties! Here’s how to get everything in order.
First things first, as soon as you become self-employed, you need to get registered. Even if you don’t get a job for six months, it has to be done from the off. This includes moonlighting while still holding down a 9-to-5 – any paid work you’re doing that doesn’t have tax already deducted counts as self-employed.
The good news is that simply registering as self-employed doesn’t mean any extra work for you just yet, it just ensures HMRC are kept up-to-date in as much detail as possible. Failure to register could bring with it a £100 fine!
There are two options available. The first is to do it online by following this link. The whole thing is pretty straightforward, just follow the process you’ll be registered as self-employed in no time… You’ll now be registered up until the point you de-register (if you ever need to). You won’t need to re-register each tax year.
You can also, if you’re willing to face HMRC’s call centres, complete your registration by calling 0845 915 4515. They’ll take you through everything and get you set-up straight away.
Once that’s all done, there are a few things you need to keep on top of while you’re self-employed.
Obviously you’re going to need to cover the costs of running your business. Then you’re going to make sure you’re keeping track of your accounts, including receipts, invoices, income and expenses. Also, while you don’t have to register as self-employed each year, you do need to register for self-assessment online.
So that’s pretty much it. You’re now registered as self-employed, and ready to take the freelancing world by storm! All that you need to do now is find some clients.
There are advantages and disadvantages to each approach, particularly when it comes to tax issues. Here's what you need to know!
While changes to dividend allowance & VAT Flat Rate Scheme have increased the tax burden for many a limited company director, the picture is still positive.