Registering as self employed
HMRC’s guidance says that you are probably self-employed if you:
- run your business for yourself and take responsibility for its success or failure;
- have several customers at the same time;
- can decide how, where and when you do your work;
- can hire other people at your own expense to help you or to do the work for you;
- are responsible for finishing any work in your own time;
- charge an agreed fixed price for your work;
- sell goods or services to make a profit (including online)
Your legal obligations if you become self-employed
You will need to register as self-employed if you earned more than £1,000 from self-employment between 6 April 2018 and 5 April 2019. If this is the first time that you are required to submit a tax return, you must register by the 5 October in your business’s second tax year. This is not a deadline you can choose to ignore as there are penalties for late notification.
If you’re newly self-employed you must also register:
- to pay Class 2 & Class 4 National Insurance contributions if applicable;
- you should monitor your turnover as registration for VAT will be necessary if sales exceed £85,000 over the preceding twelve months or if you expect it to exceed this limit in the next three months.
Posted by Cassey Nixon on
2nd May 2019
Reporting Employee Changes
There are rules that businesses must follow when they are reporting employee changes. These changes must be sent to HMRC using a Full Payment Submission (FPS). The FPS is a submission that you need to make to HMRC every time you pay your employees and must be submitted on or before the usual date you […]
Planning A Christmas Party?
Now is the time that many businesses are planning their Christmas celebration for their staff, clients and prospective clients. The cost of a staff party or other annual entertainment is generally allowed as a deduction for tax purposes. If you meet the criteria written below, then there is no need to report anything to HMRC […]