If you have commenced self-employment you should register with HMRC as soon as you start business. This can be done online with HMRC. If you are taking on employees in your new business you can also register for a PAYE scheme at the same time as your online registration. 

The latest date to register is by 5 October after the tax year has ended so any self-employment which started in 2012/13 must be registered with HMRC by 5 October 2013. Normally, paper tax returns must be then be filed by 31 October after the end of the tax year or by 31 January after the end of the tax year if your return is done on line.  Any tax outstanding is also due by 31 January after the end of the tax year. For 2012/13 and assuming the return is done on line the tax return and payment of tax is due by 31 January 2014. If you register late you may incur a penalty. 

If you are self-employed you normally have to pay class 2 and class 4 national insurance contributions and you register for this when you register your business as above. 

Class 2 national insurance contributions are due at a flat rate per week, £2.70 for 2013/14. You can choose to pay your class 2 contributions either by monthly or six monthly direct debit, or you can pay in January and July in response to payment requests from HMRC which each cover a period of 26 weeks. Exceptions to class 2 NIC liability are detailed at HMRC along with further information.

Class 4 national insurance contributions are due on annual profits over a certain amount and are calculated and paid when calculating your annual tax liability. For 2013/14 the class 4 is calculated as 9% of annual profits between £7,755 and £41,450 plus 2% on profits over £41,450. Exceptions to class 4 NIC liability are detailed at HMRC along with further information. 

If you require further help please contact us