If you are a contractor, working self-employed/as a sole trader, you must register for self-assessment. This means that you will be responsible for calculating and paying your own income tax and National Insurance.
To register for self-assessment, you must create a Government Gateway account. You can do this on the Government Gateway website.
Once you have created a Government Gateway account, you must log in and go to the Self-Assessment section. You will then need to fill in a short online form.
The form will ask for your personal details, such as your name, address, and date of birth. It will also ask for information about your income and expenses.
Once you have completed the form, you will need to submit it. HMRC will then send you a Unique Taxpayer Reference (UTR) number. You will need this number to file your self-assessment tax return.
You will need to file your self-assessment tax return every year, by the 31st of January. Your tax return will show how much income you earned in the previous tax year and how much tax you owe.
If you are unsure how to file your self-assessment tax return, several resources are available to help you. You can find information on the HMRC website, or you can speak to a qualified accountant.
Here are some tips for registering for self-assessment as a contractor:
- Register for self-assessment as soon as you start working. This will prevent you from getting into a tricky spot with HMRC.
- Keep good records of your income and expenses. This will make it easier to file your self-assessment tax return.
- Set aside enough money to cover your tax bill.
- Get professional advice if you are unsure how to file your self-assessment tax return.
By following these tips, you can make the process of registering for self-assessment as a contractor as smooth as possible.
Why is it important to register for self-assessment as a contractor?
Registering for self-assessment as a contractor is vital for several reasons. First, it allows you to comply with your tax obligations. Second, it can help you to get a mortgage or other financial products. Third, it can give you a better understanding of your finances.
Registering for self-assessment as a contractor is an essential step for any new contractor to take. It is also a good idea to sign up for a professional organisation like MyPOM, which can provide you with support and benefits.
What are the benefits of signing up for MyPOM?
MyPOM is a professional organisation that supports contractors. When you sign up for MyPOM, you will have access to a range of benefits, including:
- Jury service cover
- SSP/illness top-up
- Tax enquiry cover
- Tax & legal helplines
- Agency default cover
- Umbrella default cover
- Client default cover
These benefits can help you to protect yourself financially and legally as a contractor.