So you’ve designed to start your own cake business and now need to register as self employed, it’s quite a simple process and can all be done very quickly.
- Is self employment right for me? Make sure that self employment is right for you, rather than say setting up a limited company or perhaps registering as a partnership if you’re going into business with someone else
- Call HMRC and let them know that you’d like to register as self employed. You must register if you’ve earned more than £1000 in the last 12 months (April to April)
- Register for self assessment online so that you can fill in your tax return
- Keep records: start keeping track of all your expenses and payments. Keep receipts and make a log of all your income so that it makes it easier when filling in your tax return
- Registering your name: you can trade under your name or a business name but as a sole trader you don’t need to register your name
- Already employed? Make sure that your current work contract allows you to have another income stream. If they allow it, register for self assessment as you can then offset your expenses against your incomings, especially if you’re buying big items like a new mixer etc.