When Should I Register as Self Employed?
Self employment brings with it some new financial responsibilities.
One of which is reporting your income, expenses and profits to Her Majesty’s Revenue and Customs.
The best advice, is to register as self employed at the earliest opportunity.
As you’d expect HMRC does have some rules and it expects you to have registered as self employed by 5th October, after the end of the tax year in which you started trading.
So if your business started in July 2021, the tax year ends in April 2022, and you would need to register self employed by 5th October 2022, to receive a tax return.
It pays to do things early.
As with all financial matters, having the assistance of a professional can help with your finances. An accredited accountant will help prepare your tax return and calculate any tax payments or rebates due.
When you first start out as self employed, you may be able to receive a tax refund on your business startup costs.
Engaging with an accountant early can help you plan your finances and avoid unexpected bills and penalties.