Self-employment in the UK

Self-employment in the UK is the simplest and most popular form of business structure in the UK. From the construction business to cleaning, hairdressing and cosmetic services to professionals & doctors, many of these and other professions choose self-employment as their form of business. In practical terms, the registration process is very simple and it is enough to have a NIN number and a registration address to register.

There are a few advantages of self-employment in the UK certainly worth mentioning:

  • Ease of registration
  • Possibility to register a business retrospectively – up to 3 months
  • Low fees – National Insurance premiums of approx. £10. 00 per month
  • The tax-free amount for the financial year 2018/19 is £11,850.
  • Expenses – possibility to ‘deduct’ operating costs which allow for income tax reduction
  • Tax Returns – a simple formula of returns and unification of deadlines for all taxpayers, as well as a 10-month deadline after the end of the tax year for submission of settlements. Each entrepreneur can prepare tax settlements on their own, or if necessary contact an accounting office or a tax advisor who will provide help.

Self-employment in the UK requires 50% of operations in the UK so it is an appropriate form of business for people staying more than 6 months a year outside of the country.

How do I register as a self-employed?

If you are self-employed you must register with HMRC and receive a Unique Tax Reference number and make sure you pay the correct tax and National Insurance Contributions through your annual UK tax return. In order to register your self-employment, please contact us and we will assist you in the registration process. The registration of self-employment should take place as soon as possible after the start of operations and at the latest on 5 October in the second year of operation.

If you need help with registering your new business and you think that self-employment in the UK will be a suitable option for you, please contact us for free advice.