Newly Self Employed

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New business owners must register for self-assessment with HMRC, submit annual tax returns, pay Income Tax and Class 2/4 National Insurance. Keep accurate income and expense records.

You must register within 3 months of starting self-employment to avoid penalties and ensure correct tax payments and National Insurance contributions.

Yes. You can claim allowable expenses like office supplies, mileage, phone costs and software subscriptions to reduce taxable profit.

Calculate taxable profit by subtracting allowable expenses from income, then apply Income Tax and National Insurance rates based on thresholds.

You must register for VAT if your turnover exceeds the VAT threshold. If below, registration is optional and may benefit your business.

Keep sales invoices, receipts, bank statements, mileage logs and expense records for 6+ years to support your tax return and HMRC compliance.