How to register as self-employed

Posted on Aug 5th, 2013 | Company structure

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!

Registering as self-employed

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.

sole-trader-accounting

Join Crunch Chorus:
The free community for the self-employed

You'll get access to a range of benefits, such as invoice software, jargon-free business guides, great networking opportunities, discounts, plus much more

Written by Joshua Danton Boyd

Useful tools and resources

Business guides

Business guides

From understanding expenses to starting a limited company, we've a range of jargon-free business guides for you to download and keep.

Invoice templates

Invoicing software and templates

Create, send and store sole trader invoices in a snap with our free invoice software. You can also download a selection of invoice templates for all business types.

Take-home pay calculator

Take-home pay calculator

Use our Take-Home Pay Calculator to work out your true earnings and see if you could save money with a different company set up.

We make accounting simple

With Crunch, you’ll have unlimited advice and support from your dedicated client manager and our team of accountants, alongside innovative online accounting software so you can keep on top of your bookkeeping with ease. No appointments, no fuss.

Find out more
Our expert limited company accountants at Crunch