How and when to register/Research

When you become self-employed you must register for Income Tax and National Insurance (NI) purposes with HM Revenue & Customs (HMRC). There are three ways that you can register:

• online using the email links below - recommended for most
• by phone - by calling the Newly Self-employed Helpline - details below
• by post - by downloading and completing Form CWF1 - link below

If you are self-employed in a partnership, each of the partners must register separately.

Your NI number

In order to register you will need your national insurance number.

When to register

You should tell HMRC as soon as you start working for yourself - you can't register in advance. If you delay registering, you may have to pay an initial penalty. You will have to pay further penalties if payments become due and have not been met.

Information you will need to provide

You will need to provide the information listed below.

Make sure you have all of this to hand if registering online as you cannot save the details and return at a later date once you start to complete the online form.

• name
• address
• NI number
• date of birth
• contact telephone number
• contact email address
• the date your self-employment commenced
• the nature of your business
• your business address
• your business telephone number
• your Unique Tax Reference (UTR) - if you were previously within Self Assessment
• the business's UTR - if you are joining an existing partnership
• where relevant, the full name(s) and date(s) of birth of your business partner(s)

Where to find your NI number and UTR

Your NI number is made up of nine letters and numbers in the following format: DQ123456A. You can find it on your NI card, letters from Social Security, documents sent to you from HMRC, on your pay slips, P45s or P60s.

If you have completed a tax return previously, you will find your UTR quoted on previously issued Self Assessment correspondence, for example your Self Assessment tax return. It is made up of ten digits, for example 12345 67890. Please use the business UTR if joining an existing partnership.

Registering online

This is the quickest and most convenient way to register - although this method can't be used if you're a partner in a limited liability partnership (LLP) - see below. Note that when you submit your online application to HMRC it is secure, but the reply to you is not. As a result the email reply will not contain confidential information. If HMRC needs to send you any such information they will contact you by letter or telephone.

Please also note that for security reasons, you will be timed out after 15 minutes. Therefore please have all information to hand before you start.

Register online as self-employed (sole traders) with HMRC.

(A sole trader business is one that is owned and run by one person.)

Register online as self-employed (partner in a partnership (except LLPs)) with HMRC.

All business partners must register separately.

If you're a partner in an LLP you can only register by post - see below.

Registering by telephone

In most cases you can also register as self-employed by calling the HMRC Newly Self-Employed Helpline on Tel 0845 915 4515. Lines are open from 08.00 to 20.00 Monday to Friday, and 08.00 am to 16.00 on Saturdays. They are closed on bank holidays. You'll still need all of the information mentioned above to hand.

Note that you can't use this method if you are a partner in an LLP. You'll need to register by post - see below.

Registering by post

If you prefer to register by post please download and complete the Form CWF1 Becoming self-employed and being registered for NI contributions (NICs) and/or tax. Alternatively, you can call the HMRC Newly Self-Employed Helpline on Tel 0845 915 4515 and ask them to send you a form.

If you're a partner in an LLP you must register by post.

What is an LLP

An LLP is

A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liability. It therefore exhibits elements of partnerships and corporations. In an LLP one partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from that of an unlimited partnership. In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation. In some countries, an LLP must also have at least one "general partner" with unlimited liability. Unlike corporate shareholders, the partners have the right to manage the business directly. As opposed to that, corporate shareholders have to elect a board of directors under the laws of various state charters. The board organizes itself (also under the laws of the various state charters) and hires corporate officers who then have as "corporate" individuals the legal responsibility to manage the corporation in the corporation's best interest. An LLP also contains a different level of tax liability from that of a corporation.

Limited liability partnerships are distinct from limited partnerships in some countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries the LLP is more suited for businesses where all investors wish to take an active role in management.

There is considerable confusion between LLPs as constituted in the U.S. and that introduced in the UK in 2001 and adopted elsewhere - see below - since the UK LLP is, despite the name, specifically legislated as a Corporate body rather than a Partnership.

Find Form CWF1 - becoming self-employed and being registered for NICs and/or tax on the HMRC website- Opens in a new window.

Contractors and sub-contractors in the construction industry

If you are a contractor and/or a sub-contractor in the construction industry, you must also register with the Construction Industry Scheme.