Maddison Solo - How and when to register with HM Revenue & Customs (HMRC).

It's important to let HMRC know that you're self-employed as soon as possible - even if you already fill in a Self Assessment tax return each year. If you don't tell them, you may have to pay a penalty. You can let HMRC know about your self-employment by completing the Self Assessment registration forms. HMRC will use the information to set up the right National Insurance records for you too.

Why and when you need to register for Self Assessment.

Before you complete a tax return for the first time, you must register for Self Assessment to give HMRC the information they need to set up the right records for you. This helps to make sure you pay the right amount of tax and National Insurance at the right time.

If you already complete a tax return and you become self-employed (as a sole trader or partner in a partnership), you can use the same registration forms to tell HMRC so they can update your tax and National Insurance records.

For other changes in circumstances, simply complete the relevant boxes or supplementary pages on your Self Assessment tax return.

When to register

It's best if you register with HMRC as soon as your circumstances change. The latest you can register is by 5 October after the end of the tax year for which you need a tax return.

The tax year runs from 6 April one year to 5 April the next. So if, for example, you have tax to pay on rent from a property in the 2010-11 tax year, you need to let HMRC know by 5 October 2011. If you register late you may have to pay a penalty

Information you'll need before you register

You will need:

Your National Insurance number - in most cases you'll already have this, but if you haven't worked in the United Kingdom before you'll need to get one.

Your contact details and the contact details of your business, if you've started self-employment.

Your Unique Taxpayer Reference number if you have previously completed a Self Assessment return - you'll find this on letters or forms sent by HMRC about your tax return.

The date your circumstances changed.

If you're self-employed and will be dealing with your own tax affairs

If you're working for yourself and will be dealing with your own tax return, you can register online for Self Assessment - it's quick and easy - Click here to register.

HMRC will use the information to set up the right National Insurance records for you too.

If you're self-employed and wish to appoint an accountant or adviser

If you wish to authorise an accountant or adviser to look after your tax affairs at the same time as registering for Self Assessment, please download and complete form CWF1 and form 64-8 and send them to HMRC together.

CWF1 Form

What happens next

HMRC will set up records for you and send you a Unique Taxpayer Reference You should keep this in a safe place as you'll need it when you get in touch with HMRC.

When you receive your reference number you can register for HMRC Online Services if you want to file your tax return online - there are lots of benefits if you do.

Once you've sent in your first tax return you'll receive a notice each year, usually in April, telling you to complete a tax return. If you don't receive a notice or a tax return, you should contact HMRC.
If you are self-employed - sole trader or partner - you must arrange to pay Class 2 or Class 4 National Insurance contributions.