Registering your business with the tax authorities

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 the HMRC website http://www.hmrc.gov.uk/ct/getting-started/new-company/start-up.htm. 

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 (08459 154515) or by completing form CWF1or you may register on-line. Details can be found on the HMRC website at http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.shtml.

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

If your profits are low, you may qualify for a Small Earnings Exception from class 2 National Insurance (see our National Insurance pages for details).

You may also have to register for VAT – Make sure you know what the time limits are, as penalties can be heavy (see our VAT pages for details).