Starting In Self-Employed Business

The Tax Consequences Introduction

Anyone setting up a new business will have a long list of important matters to deal with (eg initial finance, premises, insurance, stationery etc). Income tax and National Insurance contributions may not be high on the list of priorities, although attention to these matters at the outset could save time and expense later.

Registering with HM Revenue and Customs (HMRC)

When you become self-employed you must register for income tax and National Insurance purposes with HMRC. This can be done in one of the following ways:

• online;
• by phoning the Newly Self Employed Helpline on 0845 915 4515; or
• by post using form CWF1 which can be downloaded from the HMRC website.