How do I bec ome self-employed?

[vanimal]

I am about to leave my job and become freelance, I will therefore officially be self-employed.

What do I need to do in order to be legally/financially recognised as self-employed - I am thinking things like have a business name, get my own VAT number etc.

I have absolutely NO idea whatsoever what this involves..

Can anyone advise?

you can register as self-employed online at the Inland Revenue site or even over the phone and it only takes a few minutes

don't think you HAVE to register for VAT unless you are expecting about £60/£70k of sales each year

link to hmrc self employment bit

Oh, is that it? Come up with a name and register online? I was thinking there would be loads more to it.

How comes you only need a VAT number with such high sales - I had assumed you need one because you will be paying tax on the income?

what mitchy says.

you have 3 months from the date you start your business to register as self-employed with IR, and they will send you information re: being self-employed and NI contributions.

other than that, you'll need a business bank account, a website, (if you need one), phone number, email address, business plan etc.

get some free advice from Busniess Link as well.

Oh that's great - thanks MitchyInge!

VAT is voluntary until then: if you have a business where your customers pay VAT, then it's best not to register until you hit the threshold, as you'll end up paying more than you receive, but if you, say, sell books where VAT is zero-rated, then it's worth registering as the VATman will usually send you money!

the IR website explains it all.

that doesn't mean there might not be benefits for you registering voluntarily for VAT tho

Good luck Vanimal

I've decided I'm going to go freelance as a hairstylist so this thread is useful for me too. I've spoken to businesslink before but I hadn't really decided definitely, have been dilly dallying with different ideas.
Decided I'm good as cutting and colouring so may as well use my talents.

Hope it works out well for you Vanimal, what do you do if you don't mind me asking?

that's true, mitchy.
it can especially help when you buy the equipment you need (plus it makes your income tax return easier to fill out)

Curiousmama, good luck to you too

It's quite a daunting prospect, I have dilly dallied over this for nearly two years now

No I have started (this week) it's actually been great so far.

I am a medical writer, and am horrendously bad at paperwork, so that's the bit I am most apprehensive about.

Business Link guide to starting up.

Nickelbabe, if you think VAT registration makes it easier to do your income tax return you are doing something wrong.

mranchovy: that might have been a misleading statement!

i meant because your income tax return has to be exclusive of VAT, if you've already worked out your VAT, then you can take off the lump, rather than have to add it all up.
i may have been talking out of my arse though.

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