If I start a business as a self-employed person, when do I need to tell HMRC?
If I start a business as a self-employed person, when do I need to tell HMRC?
This can seem really confusing, and many new clients come to us having not registered as self-employed, and worried that they’re going to get into trouble. In fact there is quite a lot of leeway for the timing of registration. Here’s an extract from HMRC’s guidance:
“When to register
Register by 5 October following the end of the tax year you need to send a tax return for. If you’re late, you won’t get a penalty as long as you pay your Self Assessment bill in full by the deadline.
The tax year is from 6 April to 5 April the following year.
It can take 20 working days (this is usually 4 weeks) to complete the registration process. Allow time so you can send your tax return by thedeadline. This is 31 January, or 31 October (3 months earlier) for paper returns.”
So if you start your business on 1st January 2016, you need to register with HMRC by 5th October 2016. But if you start your business on 1st May 2016, you don’t have to register until 5th October 2017 (although we’d recommend doing it before then so you have plenty of time