Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 14 Sep 2021 09:15:35 GMT by Fenrir Strife
Hello, I am a freelancer who is planning to immigrate to the UK. I have 2 questions about self assessment: 1. Is it possible if I just fill out the self assessment tax return form without setting up as a sole trader or a limited company? 2. Is it necessary for me to contribute to the NI? If yes, which type of NI should I pay for and what are the steps? Thank you very much for your help! I look forward to your reply.
Posted Tue, 14 Sep 2021 10:56:57 GMT by HMRC Admin 17

Hi,
 
If you are a UK resident sole trader then you would need to register for this.

You can do this here :

Set up as a sole trader      .

This will also register you for class 2 and class 4 NI which will be collected through your self assessment.

See link:

National Insurance   .

Thank you.
Posted Tue, 14 Sep 2021 11:40:50 GMT by Fenrir Strife
Thanks for your reply. I’m not self-employed (i.e. I don’t own a company). I simply do project-based jobs. That means I don’t have to register as a sole trader, right? And I just need to pay for class 2 and class 4 NI on yearly basis through my self-assessment?
Posted Tue, 14 Sep 2021 15:20:15 GMT by Fenrir Strife
What if I am employed under an overseas company instead of being a freelancer? Should I also fill out the self-assessment form and pay for NI on yearly basis? Thank you! Looking forward to your clarifications.
Posted Wed, 15 Sep 2021 15:21:43 GMT by HMRC Admin 10
Hi

To pay class 2 and class 4, as this is self emplyed income, you would need to register as a sole trader.

Thankyou.

Regards.
Posted Wed, 15 Sep 2021 15:24:55 GMT by HMRC Admin 10
Hi

Yes you would then need to complete a self assessment return for foreign income but you you would not need to register as a sole trader and no NI would be charged.

If you wanted to pay NI you could set up a DPNI scheme.

Guidance can be found here:

PAYE20100 - Employer records: set up employer record: DPNI scheme - direct payment (tax and NIC)

Thankyou.

Regards.
Posted Thu, 16 Sep 2021 00:57:07 GMT by Fenrir Strife
I see. Does this also apply if I work in the UK and my payroll is in GBP? You know many companies allow their employees to work from home now. (Given that it’s an overseas company and does not have UK presence)
Posted Thu, 16 Sep 2021 09:48:04 GMT by HMRC Admin 26
Hi there,

The DPNI scheme is only for those working for a foreign employer with no presence in the UK.

If you are working for a UK company, paid in the UK then all tax and NI will be deducted at source.

Thank you.
Posted Thu, 16 Sep 2021 12:09:56 GMT by Fenrir Strife
Great. Thanks a lot for the explanations!

You must be signed in to post in this forum.