HMRC’s guidance says that you are probably self-employed if you:
- run your business for yourself and take responsibility for its success or failure;
- have several customers at the same time;
- can decide how, where and when you do your work;
- can hire other people at your own expense to help you or to do the work for you;
- are responsible for finishing any work in your own time;
- charge an agreed fixed price for your work;
- sell goods or services to make a profit (including online)
Your legal obligations if you become self-employed
You will need to register as self-employed if you earned more than £1,000 from self-employment between 6 April 2018 and 5 April 2019. If this is the first time that you are required to submit a tax return, you must register by the 5 October in your business’s second tax year. This is not a deadline you can choose to ignore as there are penalties for late notification.
If you’re newly self-employed you must also register:
- to pay Class 2 & Class 4 National Insurance contributions if applicable;
- you should monitor your turnover as registration for VAT will be necessary if sales exceed £85,000 over the preceding twelve months or if you expect it to exceed this limit in the next three months.
This article is copyright © 2023