There are 3 simple ways that an individual can enroll as self employed.
Over the internet
The quickest and most convenient way to sign up is online. Your online application to HM Custom and Revenue is entirely secure and you will receive a notice through the mail when any further material is required.
You can apply to be classified as a sole trader (a business owned and operated and run by a single person) or as a partner in a partnership (except limited liability partnerships). Every business partners should signup separately.
If you’re a partner in a Limited Liability Partnership you may only sign up by mail.
Telephone
In the majority of circumstances you actually can signup as self-employed by calling HMRC’s Newly Self-employed Helpline on 0845 915 4515. Lines are open from 8.00 am to 8.00 pm Monday to Friday and 8.00 am to 4.00 pm on Saturday (not open Bank Holidays).
In case you choose to sign up by mail you can easily obtain and complete HMRC’s form CWF1: ‘Becoming self-employed and getting registered for National Insurance contributions and/or tax’.
When to sign up as self employed?
Even though you can not signup in advance of becoming self employed, you must tell HM Revenue & Customs right as you commence working for oneself. If you delay enrolling, you may have to pay a penalty.
The details an individual will need to provide if you sign-up as self employed
When enrolling to become self employed, you may have to provide details including:
• Your full name and address and telephone number
• Your National Insurance number
• Contact details including an e-mail address and telephone number
• The day your self employment commenced
• The type of your business, its registered address and phone number
• Your Unique Taxpayers Reference if you have one
Arranging to cover any Class 2 National Insurance contributions
As well as signing up as self employed you will also have to organise to pay out your Class 2 National Insurance contributions (except if you anticipate your income to be very low in which case there is an exclusion).
Most self employed people cover their Class 2 National Insurance contributions by direct debit. It is effortless to manage, will guarantee your contributions are paid and it operates automatically, which means you do not have to try to remember to make your payments.
In the event that you do not pay by Direct Debit, you will get quarterly bills in January, April, July and October.
Do you have any more questions?
We have a question and answer forum where you can ask any questions about being self employed including:
