Registering to be Self employed

How come i have to register as self-employed?

For those who have made a decision to work with yourself by getting self-employed, firstly you will need to ensure that you are in fact going to be self-employed for taxation and National Insurance contributions (NIC) purposes as HM income & Customs (HMRC) should be pleased this is basically the situation and therefore you aren't actually a worker as an alternative. Take a good look at our ‘employed, self-employed, both or neither’ page that will help you work it. You are able to have two tasks where you are employed in one and self-employed in another.

No taxation or NIC is usually subtracted from self-employed income (your ‘trading income’) and that means you are responsible for making the necessary payments to HMRC. The exception is the fact that subcontractors into the building industry frequently have taxation subtracted made from repayments built to all of them. You can read more about the Construction business Scheme ('CIS') on GOV.UK.

Legally you have to register with HMRC so that they understand they need to issue notice to accomplish a self assessment income tax return and give you tax statements when needed.