Since the beginning of the pandemic, there has been a stark rise in people becoming self-employed, with more people than ever before having to re-evaluate their careers and embrace new opportunities.
And, if you’re considering becoming a self-employed worker, you have certainly landed in the right place. We’ve created a helpful guide outlining everything that you need to know when it comes to self-employment.
But first and foremost, what does it mean to go self-employed?
In simple terms to be self-employed means you are the business. This means that you are solely responsible for your income, you make all the important decisions, you supply all of your own goods or services, and you are also responsible for all of your marketing activity and building a client base.
And although it can be incredibly challenging and nerve wracking at times, it’s also incredibly exciting and there’s lots of benefits that come hand in hand with this route of employment. These include the flexibility that comes with being your own boss, income development opportunities, career fulfilment and significant tax savings.
How to go self-employed?
Once you have weighed up the pros and cons of being self-employed and decided that this is the best route for you, you will need to register as a self-employed worker with HMRC by registering online or via post. Why? Registering as a self-employed worker is important as HMRC need to know you intend to earn as a self-employed worker and therefore will be submitting a self-assessment tax return.
What happens next?
Following your registration, you will then receive a UTR (Unique Tax Reference) code and logins for the HMRC online portal, and you’re good to go. This is all you need to do at this point.
Once you on the system as a self-employed worker in the United Kingdom, all you will need to do is submit your self-assessment tax form at the end of the year. This must be submitted on time as failure to do so could result in penalty charges.
Now you can start to trade and get on with doing what you love and growing your business.
Why React Accountancy?
Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.
From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business.
All of our team has years of experience in providing accountancy services that support your business including complex financial issues.
Get in touch today for further information about any of our services.
You can reach us on 01914324110 or contact us via email using firstname.lastname@example.org