The first step in letting HMRC know you have started your own business is to register for self-assessment (including class 2 contributions). This is the same process for all self-employed individuals. You must follow the link above and follow HMRC’s long winded process of requesting your details by 5 October following the end of the tax year in which you started.
Considering you are new to Self-Assessment, it is worth telling you that the tax year runs from 6 April to 5 April. Therefore, If you was to start your business in January 2021, you will have until 5 October 2021 to use this guide to register with HMRC.
Timings explained, let’s move on to the step by step guide of registering from start to finish:
First of all, you will need your email address and access to it, as you are sent a confirmation code within minutes and you need to enter that to proceed.
You then need to confirm your full name and create a password for your account.
Then create a recovery word, in case you ever lose access to your account – HMRC will ask you to verify yourself using this word.
Congrats!! You have now got your GOV user ID. Keep this number safe, as you will need to use it to log in to your online services account in future.
Next, choose how you want to access the 2 factor authentication codes and confirm the code you are sent.
Process through the next few screens selecting you are registering for Self-Assessment (including class 2 contributions) and you are then asked to verify your identity by choosing two of the options below and having the information to hand:
- UK Passport
- Payslips or P60
- Self-Assessment details
- Tax credits and voice ID
- Northern Ireland driving license
- You may also be able to answer questions about your credit record.
Complete your identity check by answering questions based off the two options you have chosen and move to the next step.
Once confirmed, you now need to tell HMRC your type of business between Self-Employed (as a sole trader) or Partnership.
Next you will have to tell HMRC the date you start working for yourself. This is your business start date.
You then need the following information about yourself to continue:
- Full name
- Date of birth
- National insurance number
- Residency information
- Details about any other income
- If you have previously registered for Self-Assessment
- Employment status
- Address
- Email address
Followed by information relating to the business:
- Trading name of the business (if applicable, if not use your name)
- Type of business (builder, plumber, personal trainer, make-up artist etc.)
- Business address
- Business contact details
Once you have finally completed all this information, you can submit the online form and you have registered for Self-Assessment!
It will now take HMRC a few weeks to process the application and you will receive your Unique Taxpayer Reference (UTR) by post. This is a 10 digit number which you will need to keep note of, as you need it to submit your tax return and also to make payments to HMRC.
Here at Everyday Accountants, we can take the stress out of registering for Self-Assessment and save you valuable time. We can take care of the process for you included within the onboarding process when you sign up with us to complete your Tax Returns.
Get in touch today if you need an accountant and we will be happy to help with a free consultation and no obligation quote for our services.