Self-employment status

Our service applies only to genuine self-employed individuals in business on their own account. If you are not yet registered as self-employed, then you will need to register as soon as possible.

How to register as self-employed

You can register online at www.hmrc.gov.uk, or you can call the Self-employment Helpline on 0845 915 4515. To register you must have a National Insurance number, the date your self-employment started, the nature of your business and a business address. You will be given a Unique Tax Number (UTR).

Income taxes

Being self-employed you are responsible for paying your income tax. You should set aside sufficient money in reserve during the course of the year so that you know have the money available when the time comes to pay your taxes.

National Insurance Contributions

Being self-employed you will pay both Class 2 and Class 4 National Insurances Contributions. Class 2 contributions are currently set at a fixed rate of £2.40 per week. Class 4 contributions are calculated as a percentage of your taxable profits - you pay 8% on annual taxable profits between £5,715 and £43,875 and 1% on profits over that amount.

You will need to organise monthly or quarterly payment of your Class 2 NICs, and this can be arranged by contacting the NI contributions office (call 0845 915 4655) or click here to download a direct debit application form. Class 4 NICs are paid annually once your final taxable profit has been calculated, and you should set aside sufficient cash in reserve for this payment.

More information on this subject:  Class 2 NICS   Class 4 NICS

Annual self-assessment tax returns

As you are self-employed you will need to complete an annual self –assessment tax return.

Your accountants

We strongly advise you appoint an accountant to deal with your tax matters to ensure that you fully benefit from your self-employed status. Whilst this can be expensive, we have negotiated reduced rates for self-assessments. Call us for details.