Sole Trader Registration Enquiry

Hello, I have done my self assessment for last tax year already and I got my UTR number. (As employee and a landlord) During this tax year, I keep employed by a company, and I also run my part-time business as sole trader (Self-employed) as a nail beauty professional. Due to I am employee and self-employed at the same time, I am not sure if I have to register with HMRC as a sole trader / self-employed immediately, or I need to do nothing now and just wait until the end of this tax year, and submit self-assessment as usual? If I have to register immediately, what will be the step to do the registration? Thanks.

Hi,

You should register as a Sole Trader otherwise any amounts you are due to pay for National Insurance as Self Employed will not be calculated correctly. Please see the section for 'If you've filed a tax return online before' to complete form CWF1 which registers you as Self Employed.

Register for Self Assessment

Thank you.

Thank you for your reply. May I ask a follow up question? If I am only a sole trader for a period of few months in a tax year and then stopped being self-employed. And at the same time I am still an employee of a company until the end of the tax year, in this situation, I still need to register as a sole trader for the tax year? Kind regards

Hi,

You will need to register as a sole trader if you have income to declare.

When you complete the Self Assessment return you can enter the date that you stopped trading if it is within the same tax year.

Thank you.