Questions Our Clients Ask Most
Register with HMRC for Self Assessment online by 5 October after the end of the tax year in which you started. You need your National Insurance number. If you have recently moved to the UK and do not have one yet, apply for it first.
HMRC then posts your UTR within about 10 working days. Self-employed income is not taxed through a tax code. The tax and Class 4 National Insurance are worked out on your Self Assessment return and paid by 31 January.
We can do the registration for you, in English or Russian.
Register when your taxable turnover passes £90,000 in any rolling 12 months, within 30 days of the end of the month you went over. Register straight away if you expect sales in the next 30 days alone to pass £90,000.
If you crossed the line for a short spell and can show turnover will be under £88,000 over the next 12 months, you can ask HMRC for an exception. If you take over a VAT-registered business, its sales from the last 12 months count with yours. Businesses selling only VAT-exempt goods or services cannot register.
More on our VAT page.
Yes. Voluntary registration lets you reclaim VAT on your van, tools, stock and other costs, and it usually pays off when your customers are VAT-registered businesses who can reclaim what you charge them.
It works against you when your customers are the public, because your prices go up by 20% or your margin comes down. Keep checking the rolling 12-month total either way, since passing £90,000 makes registration compulsory.
Sole traders and partners: tell HMRC online that you have stopped trading and file a final Self Assessment return for the year you stopped.
Limited companies: the company files its final accounts and Company Tax Return and pays any corporation tax due, then applies to be struck off (form DS01) or goes into liquidation. Money taken out on closure can be taxed as a capital gain for the shareholders.
Employers: send a final Full Payment Submission marked as final and pay the remaining PAYE and National Insurance.
VAT: cancel your registration within 30 days of stopping taxable sales.