Starting a new business? Get 40% off our accountancy services for 3 months! 😀


When a person becomes self-employed they become liable to pay income tax and National Insurance. Once the relevant forms have been completed to register as self-employed, a Self Assessment tax return will be issued for completion. The tax return will ask for all relevant details of income which may require the completion of additional pages for other sources of income, including employment income.

Self-employed people pay Class 2 and Class 4 National Insurance contributions. Class 2 contributions are £2.50 each week for 52 weeks a year. If profit is expected to be below £5315, you may be exempt from paying Class 2 contributions.HMRC Advice

To pay Class 2 National Insurance contributions by Direct Debit, a form CA5601 form should be completed which will allow collection of contributions either monthly or every six months. From April 2011, the contributions for Class 2 will be due on 31st July and 31st January each year, the same as payment of Self Assessment tax.

HMRC recommend Direct Debit as a payment method as it is less likely that you will miss payments, is a secure method of payment and users are given protection by the Direct Debit Guarantee. A Direct Debit Instruction has to be completed and returned to HMRC. If a person is newly self-employed, form CA5601 form should be completed and submitted to HMRC who will inform the self-employed individual of the first payment date. Making payments of Class 2 National Insurance will contribute towards certain benefits, like state pension or maternity pay.

Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?


Call us on 020 3355 4047 if you’re not sure.