Register for self assessment – a beginner’s guide

Introduction

As a sole trader, you need to register for self assessment when your turnover exceeds £1,000 in the tax year, which runs from 6 April to 5 April.

What is turnover?

This is the total of the sales income received by the business.  This is not to be confused with profit, which is the turnover (sales) less the costs (expenses).

How to register

You can register for self assessment via the gov.uk website at:  Check how to register for Self Assessment - GOV.UK (www.gov.uk)  You can also reactivate your self assessment via this link.  You will need a Government Gateway ID and password to be able to login to complete the registration.

If it's your first time, you'll need to create a Government Gateway account – just click on ‘Register’ and follow the prompts.  You’ll need some basic details like your name, address, and National Insurance number.

Once you're signed in, choose to ‘Register for Self Assessment.’ HMRC will ask you a few questions to determine which type of registration you need, such as whether you're self-employed or have another income source.  After that, you’ll be assigned a Unique Taxpayer Reference (UTR).  HMRC will post this to you within 10 days.

What is a UTR?

A Unique Taxpayer Reference (UTR) is a 10-digit number that HMRC assigns to individuals or businesses when they register for Self Assessment.  It’s essentially your tax ID, and it's used to identify you or your business in all your dealings with HMRC.

Is there a deadline to register?

The deadline to register for self assessment relating to the 2023/24 tax year is 5 October 2024.

In conclusion

This blog deals with sole traders, but there may be other reasons why you need to register for self assessment.

As agents, we can register for self assessment on your behalf.  Please contact us to arrange this and how we can assist with your business finances.