You may need to register for self assessment and complete a tax return for a number of reasons. This blog primarily sets out the process for the self-employed, but if you think you may need to file a tax return for any other reason, please give us a call here and we will be happy to help.
If you are self-employed, you will need to register with HMRC in order to meet your filing obligations and ensure that you are paying the correct amount of income tax and national insurance.
Below are some useful tips to help you with the process.
How to register for self assessment online
If you have never been self-employed before or have not previously completed a self assessment tax return, you will need to register online with HMRC. You will be prompted to set up a Government Gateway user ID and create a business tax account.
HMRC will then send you a unique taxpayer reference (UTR) number which you will need in order to file a tax return.
What if you don’t want to register or file your own tax return, what can you do?
Most people who are self-employed will hire an accountant to register and file their returns for them. FLB can manage this process for you and ensure that your tax return is completed accurately, quickly and filed on time.
The rules and regulations are changing constantly and here at FLB we will keep you updated and ensure that you remain compliant. We will also offer advice on ways to minimise your tax liabilities. This will save you time and money allowing you to focus on running your business.
What happens if you don’t register or file your tax return on time?
If you fail to notify HMRC of your self-employment or additional income you earn, you could face penalties from HMRC. If you are not sure if you have previously registered, you can contact HMRC and quote your national insurance number and they will be able to check this.
Here at FLB, we will manage your tax return deadlines and communicate with you regularly.
What responsibilities do you have once registered as self-employed?
Your responsibilities will include:
- Filing a self assessment tax return each year.
- Keeping accurate records, particularly of costs and sales.
- Registering for VAT if your annual turnover exceeds £85,000.
- As well as income tax you’ll have to pay national insurance contributions (NICs). Most self-employed people need to pay class 2 NIC, and if you make above a certain amount, you may also need to pay class 4 NIC.
At FLB we have a highly qualified and experienced tax team based in Reading, London and Epsom. We help self-employed taxpayers with all aspects of their accounting and taxation requirements, including compliance and tax planning. Give us a call here.