If you decide to start working for yourself, you must inform HMRC of your decision, regardless of whether or not you already complete a self assessment tax return. It is best to register as self employed with HMRC straight away, however you are allowed to trade for up to three months before you do so. HMRC will issue penalties for late registration and therefore it is beneficial to be proactive and timely when registering.
Registering as self employed is very straightforward. All you have to do is complete a CWF1 form and return it to HMRC. The form is relatively simple and requires to you provide basic details about yourself and your business. HMRC will then issue you with a Unique Tax Reference number (UTR).
If you decide to hire an accountant to help you with your business, they can organise the registration for you and provide guidance to help you get the business up and running and organise your books. However, if you decide to go it alone there is a helpline for the newly self employed which you can contact on 08459 15 4515.
At The Accountancy Partnership we can register you as self employed and provide ongoing support and any help or advice you may need included in our low monthly fee. If you would like to discuss your transition into self employment further, find out how we can help you or request a quotation please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.