Are you

thinking of
working for
yourself?
We’ll show you
how to get things moving
where to get help
how to register your business
SE1
Well done
You have already tackled the two hardest
parts of starting out on your own: getting
an idea and making the decision to actually
do it. Now it’s time to think about the
paperwork. That’s where we come in,
and we think you’ll be surprised at how
simple it can be.
First things first

Get registered

Everyone starting out on their own If you're not sure whether you
needs to register with HM Revenue qualify as self­employed, leaflet IR56
& Customs. It’s quick, it’s painless and Employed or self­employed? explains
it can definitely save you time and the difference, or use the Helpline.
money. You must do this as soon
as you start or within the first three Leaflet IR56

months, even if you already use a Employed or self­employed?

Self Assessment tax return. There are www.hmrc.gov.uk/pdfs/ir56.pdf

penalties for not registering, so fill in

the form at the back of this leaflet and As soon as you register, we'll send
send it to us right away. There's the you The Guide, a book designed
Helpline for the Newly Self­Employed specifically for the newly self­
if you have any problems. And if you're employed that tackles all the major
unemployed at the moment, don' t issues like tax, National Insurance
forget to tell the Jobcentre. and record keeping.

Helpline for the Newly Self­Employed

08459 15 45 15

Register now

Fill in the form at the back of this leaflet

and send it to us right away.
Q&A

How do I pay my tax?

You fill in a Self Assessment tax return
each year. There are sections on income
and expenses, plus you can claim
allowances and reliefs. We use this
How does National Insurance work?
There are two types of National
Insurance for self­employed people –
Class 2, which is a fixed weekly amount,
and Class 4, which is a percentage of
information to work out how much tax your taxable profits. We collect Class 2
and National Insurance you need to pay. by monthly direct debit or quarterly
The online version is quick and secure, bill – there’s a form attached to this
and it shows you the figures straight leaflet for you to fill in. You include
away. You can find out more about Class 4 on your tax return. There’s
Self Assessment in The Guide, on our more about National Insurance in
website, or you can call the Helpline. The Guide, on the website, or you can
call the Self­Employment Contact Centre.
Relevant website
www.hmrc.gov.uk/sa Relevant website
www.hmrc.gov.uk/nic
Self Assessment Helpline
0845 9000 444 Self­Employment Contact Centre
08459 15 46 55

What about VAT?

You don’t have to register for VAT until
your taxable turnover reaches £64,000,
but there’s plenty of advice available
when it does. For more information,
see The Guide, visit our website or
call the National Advice Service.

Relevant website
www.hmrc.gov.uk
National Advice Service
0845 010 9000
A few questions taken from The Guide that
you might already be asking yourself.

What if I work in the Do I get tax credits?

construction industry? Self­employed people can claim tax
To help contractors and subcontractors credits, depending on their income
pay the right amount of tax and level and circumstances. Plus, there
National Insurance, we have set up are some additional tax reliefs
the Construction Industry Scheme. specifically designed for new
Under the Scheme, all payments businesses. See The Guide for more
made from contractors to information or visit the website to
subcontractors must take account see if you qualify.
of the subcontractor’s tax status as
determined by HM Revenue & Customs. Relevant website
See The Guide or visit the website for www.hmrc.gov.uk/taxcredits
more information.

Relevant website
www.hmrc.gov.uk/cis

What records must I keep?

It’s all about making things easier
for yourself. The law says you must
keep appropriate records – also, you
would find it difficult to fill in your
Self Assessment tax return without
them. Bank statements, receipts and
cash transaction records are all vital
for working out your profits for the
year – and we use this information
to calculate your tax and National
Insurance. There’s more about
records in The Guide but, for now,
make sure you keep everything for
at least five years.
Register now and get the ball rolling
on your self­employed career
Fill in this form and send it to us right away.
Useful contacts

Newly Self­Employed
www.hmrc.gov.uk/startingup
Helpline for the Newly Self­Employed
08459 15 45 15

Self Assessment
www.hmrc.gov.uk/sa
Self Assessment Helpline
0845 9000 444

National Insurance
www.hmrc.gov.uk/nic
Self­Employment Contact Centre
08459 15 46 55

These notes are for guidance only

and reflect the position at the time
of writing. They do not affect any
right of appeal.

Issued by HM Revenue & Customs

Communications and Marketing
May 2007
© Crown copyright 2007

Printed by Astron 05/07 NSC Code R2P 6409

 Becoming self-employed and registering for

National Insurance contributions and/or tax

You must tell us when you start working for yourself - that is, when you become self-employed. For official use only
The easiest way is to call the Helpline for the Newly Self-Employed on 0845 9 15 45 15. System Action Complete
This form details the information you must give to the operator. You can also fill in the
form and post it to us at the address shown overleaf. NIRS
If you delay telling us you are self-employed for three months or more you may have to pay a
penalty of £100. If you know you are registering late, please tell us the reason for the delay TBS
in the ‘Additional Information’ box overleaf. You must complete this form in capital letters.
SA
Take particular care to complete the questions with this symbol.

About You About Your business

Title - enter Mr, Mrs, Miss, Ms, or other title When did you start working for yourself? (DD MM YYYY)

D D M M Y Y Y Y

Surname What sort of self-employed work do you do?

First name(s) If you intend working as a sub-contractor in the

Construction Industry you must be registered with the
HM Revenue & Customs Construction Industry scheme.
Your date of birth (DD MM YYYY) To find out how to do this phone the CIS Helpline
on 0845 366 7899.
Please tick this box if you are a Share Fisherman
Previous surname (if applicable) (see leaflet CA11 for further information)
Please tick this box if you are on the
New Deal 25+ scheme
Date of name change (DD MM YYYY) What is the name of your business?

Your National Insurance number Business address

If you do not have a National Insurance number

please tick the box
If you were previously self-employed please tell us Postcode
your most recent tax reference. It will be the ten digit
reference (the UTR) in the top left-hand corner on Your business phone number if different from
page 1 of your Tax Return. contact number

Your address What is your position in the business? For example,

sole trader, partner

Do you have any business partners?

Postcode
No Yes
Your contact phone number If you have business partners they also must register.
Business partner’s name

If you are not a UK resident, and have come to the

UK from abroad within the last 12 months, Business partner’s National Insurance number
please tick this box

CWF1 Page 1 HMRC 03/07

Your business continued Starting up in business guide
Business partner’s address Please tick the box if you would like us to send you
a copy of ‘Starting up in business’ after you have
registered. You can also find it at
www.hmrc.gov.uk/startingup

Postcode Signed

If you have more than one partner please write their

names, addresses and National Insurance numbers in
the ‘Additional information’ box.
Date (DD MM YYYY)
If you are joining an existing business partnership,
please provide the partnership tax reference number.

If you are going to do all the work for one person or firm, Additional information

you may be an employee. For more information you can:

• phone the Self Assessment Helpline on
0845 9000 444 or
• visit any HM Revenue & Customs office.
If you are, or will be, doing all your work for one person
or firm, please enter their name and address.

Full name

Address

Postcode

How to pay your Class 2 National

Insurance contributions (NICs)
For tax year 2007–08 self-employed National Insurance
contributions are £2.20 per week.
To arrange payment of your National Insurance
contributions just fill in the Direct Debit mandate attached.
If you are unable to pay by Direct Debit we will arrange
to send you a bill every 13 weeks. These will be issued
in January, April, July and October.
If you expect your income from the business to be below
£4,635 for the tax year 6 April 2007 to 5 April 2008 you
may not have to pay National Insurance contributions.
If you would like more information on the
Small Earnings Exception (SEE) tick the box.

Employing someone else

If you are thinking of taking someone on, or already
employ someone else, please phone the New Employer’s
Please send the completed form to:
Helpline on 0845 607 0143 or tick the box and
we will send you more information. National Insurance Contributions Office
Central Agent Authorisation Team
Longbenton
VAT Newcastle upon Tyne
Please read the note about VAT in the attached NE98 1ZZ
leaflet. If you would like VAT 1 Application
or take it to any HM Revenue & Customs office.
for registration form tick the box.

Page 2
 National Insurance
contributions

Application to pay Class 2 contributions by Direct Debit

Please fill in the whole form and return to

National Insurance Contributions Office
Self Employment Services
Application Processing Centre
Longbenton
Newcastle upon Tyne
NE98 1ZZ

1 National Insurance number 6 Date of birth 1 9

Letters Numbers Letter

7 Address
2 Date self-

employment

started

3 Would you like us to collect contributions due

from the start of your self-employment with the
first Direct Debit payment? Yes No Postcode

4 Surname and first two initials

8 Daytime telephone number (including the STD code)
STD Telephone
code number

5 Title (ie, Mr, Mrs, Miss, Ms)

Instruction to your Bank or ������

Building Society to pay by �����
Name(s) of account holder(s) Direct Debit

Originator’s Identification Number

Bank/Building Society account number
9 9 1 1 3 3
Branch Sort Code Reference Number (National Insurance number)

Instruction to your Bank or Building Society.

Name and full postal address of your Bank or Building Society Please pay the Inland Revenue National Insurance Contributions Office Direct Debits
from the account detailed in this instruction subject to the safeguards assured by The
To: The Manager Bank/Building Society Direct Debit Guarantee. I understand that this Instruction may remain with the
National Insurance Contributions Office and, if so, details will be passed electronically
Address to my Bank/Building Society.

Signature(s)

Postcode Date

Some Banks or Building Societies may not accept Direct Debit Instructions for some types of account CA5601
 About Direct Debit Direct Debit Application

������
How to apply to pay by Direct Debit
Fill in the application form overleaf and send it to
The Direct Debit Guarantee
�����
This guarantee is offered by all Banks and Building

National Insurance Contributions Office Societies that take part in the Direct Debit Scheme. The

Self Employment Services efficiency and security of the Scheme is monitored and

Application Processing Centre protected by your own Bank or Building Society.

Longbenton
Newcastle upon Tyne If the amounts to be paid or the payment dates change,

NE98 1ZZ. the National Insurance Contributions Office

will notify you 10 working days in advance of

We regret that the facility to pay by Direct Debit is not your account being debited or as otherwise agreed.

available to share fishermen. Our leaflet CA11 “National

Insurance for share fishermen” gives more information. If an error is made by the National Insurance

Contributions Office or your Bank or Building Society,

you are guaranteed a full and immediate refund

How will payments be made? from your branch of the amount paid.

The application form asks you if you wish to pay by Direct You can cancel a Direct Debit at any time by writing to

Debit from the start of your self-employment. In most cases your Bank or Building Society. Please also send a copy of

this means that all contributions due from the start of your your letter to us.

self-employment will be collected with the first payment

from your Bank or Building Society.
If you do not wish to pay by Direct Debit from the start of
your self-employment or we cannot arrange this, your
Direct Debit will be started from a current date. We will
then send you a separate bill for any contributions due
from the start of your self-employment to the date your
Direct Debit begins.
Although we act at once to set up your Direct Debit, it may
take some weeks before the first National Insurance
contributions are collected from your account. We will write
to tell you when the first payment will be made. Please
ensure that you have enough funds in your account to meet
your first payment.
After that payments:
• will be made automatically for as long as you wish
and
• will normally be deducted from your account on
the second Friday of each month
These payments will cover National Insurance contributions
for either four or five weeks, depending on the number of
Sundays in the preceding tax month. The tax month ends on
the 5th of each month.
A regular check of your Bank/Building Society statements
will reassure you that payments have been made correctly.