Q: I have recently commenced self-employment. It seems to be very confusing as to what I need to do to register with HMRC. Can you give me some pointers?



A: Once a person has established self-employment he has responsibilities in relation to tax, NICs and possibly VAT.
HMRC produce a leaflet SE1 ‘Thinking of working for yourself’. This sets out the basic requirements for those considering self-employment or who have already started their own business.
The newly self-employed can also telephone a helpline on 0300 200 3504 or access HMRC guidance at www.gov.uk/business-tax/self-employed. Online registration can be made.Registration must be made as soon as possible.

There are penalties for failure to notify chargeability to tax and Class 2 NICs. Again online registration can be made or by completing form CWF1. A person needs to register for Class 2 NIC’s even if for example they are also employed and paying Class 1 NIC’s. Following the reform of the collection of Class 2 NIC, the payment of the correct amount of NIC will be dealt with through the self-assessment system.

Registration for VAT must also be made if the VAT taxable turnover is more than £83,000.
Other registrations may need to be considered for example PAYE or the construction industry scheme.

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