Taking the step into self-employment is a big one but exciting at the same time. Before you start planning that winning marketing strategy you first need to register yourself as a self-employed sole trader or freelancer if that is the route you have chosen to go down.
If you do not register yourself as self-employed then you are risking possible financial penalties, so make sure you follow the steps to avoid any additional hassle.
Existing employment
If you are employed by another company while you are in the process of setting up your new business, you will need to decide when that employment will end. Once you are ready you need to register as being self-employed, this also includes any freelancing you might do which doesn’t already have any tax deductions. If you don’t register, then you may incur a £100 fine courtesy of HMRC.
Registration process
If you are going to be working as a sole trader then there are two options available. The first is to register online by going to the Gov.uk site. The process is very simple, and you will be registered as self-employed in no time. You will now be registered up until you de-register and you will not need to re-register each tax year.
Steps to register online:
Once you’re registered
Once you’re registered there will be a few things you need to do, such as cover the costs of running your business. But it doesn’t end there as you will need to keep a detailed account of your receipts, income, invoices, and any expenses you are entitled to claim back.
Finally, you will need to register for self-assessment online so that you can file your tax return each year. Remember, you do not need to do it all yourself as a good accountant is worth their weight in gold.
You are now registered as a self-employed and ready to take on the world. All you need to now is to create that awesome marketing strategy and go out and win some new business and attract a whole host of clients.
