How to Register for Self Assessment with HMRC?

This article will help you through the process of registering for self assessment with HMRC, ensuring that you fulfil your legal requirements and avoid any fines and penalties.

Who needs to register for self-assessment?

Before we begin the registration process, it's important to understand who needs to register. Typically, you'll need to register, if:

• You are self-employed or a sole trader.
• You are a business partner, corporate director, or landlord with property income.
• You have revenue from overseas.
• You get income from savings, investments, or dividends.
• You are involved in cryptocurrency trading, investing, or mining activities.
• You need to seek tax relief for costs or charity contributions.
• Your income exceeds £100,000.
• You need to pay capital gains tax.

When should you register for HMRC?

The date for enrolling for self assessment is based on your circumstances:

• If you are self-employed or a lone trader, you must register by October 5, following the end of the tax year in which you began your firm.

• It is vital to know that the UK tax year runs from April 6 to April 5 the following year.

How to register for HMRC self assessment tax returns

Determine your registration method

There are several methods to register HMRC self assessment tax returns depending on your situation:

a) Self-employed or sole trader: Register for self-assessment and Class 2 National Insurance payments

b) Not self-employed: Register for self-assessment alone.

c) Partnership: Register both you and your partner.

Gather necessary information

Before you begin the registration procedure, make sure you have the necessary information ready:

• Your complete name and date of birth
• Your National Insurance Number
• Your address and telephone number
• The day you began self-employment or when your circumstances changed
• The nature of your job or business

Register online with self assessment software

Follow the steps to register online:

• Visit the HMRC website (www.gov.uk/log-in-file-self-assessment-tax-return).
• Click "Register for self assessment software."
• Select the appropriate option depending on your situation.
• Create a Government Gateway account if you don't already have one.
• Fill out the registration form with personal information and income sources.

Register by phone or mail

If you cannot register online, you may:

• Call the HMRC self assessment tax return Helpline at 0300 200 3310.
• Complete the relevant form and submit it via post.
• Form SA1 is for people.
• Form SA400 for partnerships.
• Form SA401 for partners.

Wait for your Unique Taxpayer Reference (UTR)

After enrolling, HMRC will send you a letter with your 10-digit Unique Taxpayer Reference (UTR). This normally comes within 10 working days (or 21 days if you live overseas). Keep this number secure since you will need it to submit tax returns and contact HMRC.

Activate your account

Once you have received your UTR, you may activate your self assessment online account:

• Return to the HMRC website.
• Log in to your Government Gateway account.
• Enter your UTR when prompted.
• Select your preferred method of getting your activation code (text or mail).
• Enter the activation code once you get it.

What happens following registration?

Once you have registered and activated your account, you will be able to submit your HMRC self assessment tax returns. Here's what you may expect:

Annual tax returns: Each year, you must submit a self-assessment tax return by January 31 after the end of the tax year for online submissions. If you're submitting a paper return, the deadline is October 31.

Payments: You will normally be required to make two payments each year, on January 31 and July 31. Maintain proper records of your income and spending. Good record-keeping makes filing your tax return simpler and more accurate.

Information from HMRC: HMRC will send you reminders and information regarding deadlines and changes to the self-assessment system.

Common pitfalls to avoid in HMRC register for self assessment

Missing the registration deadline: This might result in fines, so be sure you register on time.

Incorrect information: Please double-check all of your registration data before submitting it.

Ignore HMRC communications: Always read and react to HMRC communications quickly.

Forgetting your UTR: Keep your Unique Taxpayer Reference secure and accessible.

Underestimating the time required: Allow plenty of time to collect information and finish the registration procedure.

Conclusion

Registering for self assessment online with HMRC is an important step for many UK taxpayers. While the procedure may seem difficult at first, taking these steps and being prepared may make it simple.

If you have any questions concerning your tax position or the registration procedure, you can get help from Taxd, an online self assessment tax software.

FAQs

1: When is the deadline to register for the self assessment?

For self-employed persons or sole traders, the deadline is October 5, after the end of the tax year in which you began your firm. For others, the deadline for submitting a return is October 5 of the tax year.

2: How can I get my Unique Taxpayer Reference (UTR)?

After you register for self-assessment, HMRC will send you a letter with your 10-digit UTR. This normally arrives within 10 working days (21 days if you are overseas).

3: Can I register for self assessment if I work but have supplementary income?

Yes, you must register for self-assessment if you have extra untaxed income from property rents, investments, or freelance employment, even if you are employed.

4: What information will I need to register for self assessment online?

You'll need your complete name, date of birth, National Insurance number, address, phone number, and information about when you first began self-employment or when your circumstances changed to need self assessment.