Becoming self-employed/contractor/starting your own business first time?

If you are thinking about starting your own company or leaving your permanent role and taking on a contract role, and you are wondering what the tasks are to fulfil the tax and reporting requirements, here are a list of things you need to do and by when:

  1. Register a company with Company House, costs £13, takes 1 or 2 days
  2. Set up a business banking account
  3. Register as Self-Employed with HMRC, who will issue you a UTR (Unique TaxPayer Reference)
  4. Register your company with HMRC
  5. Register your company as an Employer with HMRC – if you plan to pay yourself salary and hire employees
  6. Register for VAT with HMRC. It is optional if your company’s expected annual turnover excluding VAT is less than £85,000 and mandatory if it is over £85,000
  7. Submit monthly PAYE to HMRC, if applicable
  8. Submit quarterly VAT to HMRC, if applicable
  9. Submit personal tax return to HMRC, mandatory
  10. Submit corporation tax return to HMRC and annual account to Company House, manadatory

Alternatively, find an accountant from day one, the accountant will do all the above, all you need to provide is the name of your company!