Starting your business as a self employed person is both an exciting and a challenging prospect. One key area you need to ensure is to register as self employed with taxman (HMRC). This post explains how you do this and time limits for you to register.
Time Limits
For National Insurance purposes make sure you are registered within three months from the end of the month in which became self employed. If you do not get around doing this it will result in £100 fine. Further, you will need to make payments of £2.40 per week for Class 2 National Insurance contributions. However, if your earnings are below the small earnings exception level – £5,075 for tax year 2009/10, you are not required to make any Class 2 National Insurance contributions.
How to Register
You have the following options to register:
- Call the Self Employed Registration Helpline on 0845 915 4515 or
- Completing CWF1 or mailing it to HMRC or
- Registering online via the government gateway portal on www.hmrc.gov.uk.
Whichever method you choose to register you will need to provide the following information: full name, address, post code, date of birth, national insurance number and, if you decide to pay your Class 2 National Insurance through a standing order – your bank details.
Joint Notification
Once you have registered, this will act as joint notification of tax and national insurance. You will receive a 10 digit Unique Taxpayer Reference (UTR) and a blank tax return for you to complete for the year 2009/10.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.
