How to go self employed

How to Become Self-Employed: A Comprehensive Guide

Since the beginning of the pandemic, there has been a significant increase in the number of people becoming self-employed. With more individuals re-evaluating their careers and seeking new opportunities, self-employment has become an attractive option for those looking to take control of their professional lives.

If you’re considering taking the leap into self-employment, you’re in the right place. We’ve put together a detailed guide to help you understand everything you need to know about becoming self-employed.

What Does It Mean to Go Self-Employed?

In simple terms, being self-employed means that you are the business. You are solely responsible for generating your income, making critical decisions, supplying your own goods or services, managing marketing activities, and building your client base.

While self-employment can be challenging and, at times, nerve-wracking, it also comes with many benefits. These include:
– **Flexibility:** You have the freedom to set your own schedule and work on your own terms.
– **Income Opportunities:** There is potential for significant income growth as you control how much you earn.
– **Career Fulfilment:** You can pursue work you’re passionate about and build a career aligned with your goals.
– **Tax Savings:** Self-employment often comes with tax-saving opportunities, such as claiming business expenses.

How to Go Self-Employed

Once you’ve carefully weighed the pros and cons of self-employment and decided it’s the right path for you, the first step is registering as a self-employed worker with HMRC.

Registering with HMRC

Registering as self-employed is a straightforward process. You can register online or via post through the HMRC website. This registration informs HMRC that you intend to earn income as a self-employed worker and will be submitting a self-assessment tax return.

It’s essential to register promptly to avoid any issues later. This step ensures you’re on the right side of tax compliance and allows you to focus on building your business.

What Happens Next?

After completing your registration, you’ll receive:
– A **UTR (Unique Tax Reference)** code, which identifies you as a self-employed worker.
– Logins for the HMRC online portal, giving you access to manage your self-assessment tax returns.

Once these steps are complete, you’re ready to trade as a self-employed individual. All that’s left is to submit your self-assessment tax return at the end of the year.

Submitting Your Self-Assessment Tax Return

Submitting your self-assessment tax return is a crucial part of being self-employed. This document outlines your earnings, expenses, and tax obligations for the year. It’s vital to submit it on time, as late submissions can result in penalties.

To make this process easier:
– Keep detailed records of all your income and expenses throughout the year.
– Use accounting software or work with an accountant to stay organised.
– Set reminders for key tax deadlines to ensure you never miss a submission date.

With these steps in place, you can focus on what you love—growing your business and achieving your goals.

Why React Accountancy?

At React Accountancy, we specialise in providing trusted accountancy services tailored to the unique needs of start-ups, established businesses, and multinational companies.

From the moment you contact us, our friendly and professional team will work with you to provide expert advice, support, and accountancy solutions that help your business thrive.

What We Offer

– **Experience You Can Trust:** Our team has years of experience supporting businesses of all sizes and industries.
– **Personalised Solutions:** We understand that every business is unique, and we tailor our services to meet your needs.
– **Hassle-Free Support:** From registering as self-employed to managing complex financial issues, we’re here to help.

Get in Touch Today

If you’re ready to start your journey into self-employment or need support managing your accounts, we’re here to help.

– Call us on 0191 432 4110
– Email us at info@reactaccountancy.co.uk
– Visit our website at React Accountancy

Let us help you make your self-employment journey a success!