While most people in the UK work for companies, there is an increasing number of people who choose to be self-employed.
In fact, there are nearly 5 million self-employed individuals in the UK, with many thinking the number will soon be higher.
Everyone can work as self-employed, but it is a particularly good option for moms. It can help them get more time with their families, as well as controlling when they work and how often they work. Many other benefits of being self-employed exist as well. There are also several high-quality tools out there (such as Amaiz) that can make running a business much more efficient.
However, if you are going to work as a self-employed mom, there are a couple of different things you should know. One of the most important is to know how to register as self-employed. Without any further ado, let’s look at how to register as a self-employed mom in the UK.
Check to Make Sure Your Work Counts as Self Employment
Before you think about registering, you need to make sure that what you do actually qualifies as self-employment. Thankfully, doing this is easy as the UK has a helpful Employment Status Indicator tool. By answering a few questions, you will discover what your status is and whether you need to register as self-employed.
Of course, there are other ways for you to work for yourself, such as a limited company or if you participate in a business partnership. So not being employed in a traditional manner doesn’t always mean you are self-employed. If you are still unsure what you qualify as or what steps you should take, there are many different resources that can help you reach out to those who can help.
Once it has been confirmed that what you do is considered self-employment or that you need to register as a sole trader, you should look to register at your earliest convenience.
Know What Documents and Records to Keep
A big part of being self-employed is keeping impeccable records. You need to save and keep all records receipts, invoices, your accounting information, proof of expenses and statements. These all help you figure out your return or how much you owe in taxes, and might need to be shown to HMRC if asked. These records should be kept for at least 5 years. You’re not always asked to produce them in the tax year they were created or used, so be sure to keep them around.
Once you know what you need to keep and save, be sure to keep it safe and secure. You don’t want your children accidentally hiding or destroying them. If they do, you could find yourself in some trouble once tax time rolls around. Generally, it is a good idea to keep most important forms or documents either locked up or kept online, so they aren’t lost or destroyed.
Register To Be Able to Pay Taxes
The next, and most important, step is to actually register with the government. This will allow you to report your income and pay taxes. First things first, if you don’t already have a National Insurance number, you need to apply for one. Once that is completed, the next step is to register for Self Assessment.
This should be done by October 5th in the second tax year of your business at the latest. If you miss this date, there is a chance you will be fined. You can register online and the process is quite simple and straightforward. From there, complete and file your return so you are able to pay your taxes and continue to operate.
If you operate as a self-employed individual without registering and/or paying taxes, you could find yourself facing serious fines, penalties and potentially even legal action. If you are struggling with filing your taxes, there are plenty of companies or accountants that can assist you.
In conclusion, registering as a self-employed mom is a great way to make a living, but you need to make sure you know what goes into registering. We hope this article has helped you out!
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