If you are working as a freelancer in the UK then you are legally required to declare your income. One way of doing this is by becoming a sole trader.
To obtain your sole trader status, you will need:
- A National Insurance Number
- A UK address
- Your personal information (current address, phone number etc...)
Start by going to the HMRC (HM Revenue & Customs) website and creating a personal tax account:
Select the "Individual Government Gateway account" and fill in the information required.
You will be given a User ID and will need to create a password. Make a note of these as they won't be given again.
Once you have registered on the HMRC website, click on the following link and complete the Self-Assessment registration form:
The purpose of this form is to obtain your Unique Tax Payer reference (UTR). This will be sent to you in a letter several working days after completing the form.
Most of the information required is fairly straight forward. However, these more unusual questions should be answered as follows:
- Name of business: your full name
- What sort of self-employed work do you do? Corporate Consulting
- Date the above period of self-employment started: the date you completed your first project on Crème de la Crème
- Capacity in which you are completing this form: Sole Trader
Once you have submitted the form, you must then wait until you receive your UTR in the post. You can then click on the following link:
Login to your government gateway using your User ID and password and select the self-assessment link. Enter your UTR and follow the instructions.
You will reach a point where you will need to wait for an activation code. This will also be sent to you in the post.
Once this has arrived, return to the self-assessment link and complete the process. You have now obtained your sole trader status!
By following the onscreen instructions you will be brought to your own business tax account. This is linked to your personal tax account and will be used to declare your earnings each year.
If you have any further questions then please get in contact!