PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Registering your business with the tax authorities

Starting a new business

It is important to inform HM Revenue and Customs when you become self-employed or start trading through a company.

If you have a company, you should consider the issues listed on Gov.uk website https://www.gov.uk/limited-company-formation/set-up-your-company-for-corporation-tax

If you are self-employed or form a partnership, you should register your business as soon as you start trading. You can do this by phoning HM Revenue and Customs’ Newly Self-employed helpline (0300 200 3504) or you may register on-line. Details can be found on the Gov.uk website at https://www.gov.uk/register-for-self-assessment.

In all cases you must tell HM Revenue and Customs about your new business by 5 October following the end of  tax year in which you start trading. If you do not, HM Revenue and Customs can charge a penalty. Look at our Undeclared Income Guide for more information.

If your profits are low, you may not need to pay class 2 National Insurance. (See the National Insurance pages for details). Procedures here are changing, and class 2 is due to be abolished by 2018.

You may also have to register for VAT – https://www.gov.uk/vat-registration.