Depending how much you earn as a sole trader, you may need to register for Self-Assessment
Do I need to register for Self-Assessment?
If you are have self-assessment income, it is your responsibility to make sure you pay the correct amount of Income Tax and National Insurance. Registering for Self-Assessment will mean you will be able to submit a self-assessment tax return, and pay declare your earnings and Tax and NI due. If your earnings are over the £1,000 Self-Assessment allowance, you will need to register for Self-Assessment.
What if I am Employed, as well as Self-Employed?
The same rules apply if you are employed, as well as earning money through self-employment.So if that little side hustle you started in your bedroom, is making you more than £1,000 a year, you need to register!
What is the Deadline to register for Self-Assessment?
You need to register for Self-Assessment before 5th October in the second tax year where you have earned more than £1,000 through Self Employment.
How do I Register?
Registering for self-assessment can done be through your Government Gateway account. While setting up a Government Gateway account can be quick and easy, registering for Self-Assessment can take a little longer, so it’s worth getting this done early!
What happens next?
Once you have registered HMRC will send you a Unique Taxpayer Reference, or UTR for short.They will send this by post, but you will be able to access it online sooner. You will then need to submit your Self-Assessment Tax Return each year. If you stop trading and earning self-employed income, you will need to inform HMRC.
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