When should I register as self employed?

As soon as you earn more than £1,000 in a tax year you from self-employment you must register with HMRC for self-assessment. This includes any amounts received as cash or where the value of goods received exceeds this amount.

If you are just starting out and earn under this in a tax year (which runs from April to April), you don’t need to declare this income or register as a sole trader, you don’t owe HMRC any tax on this.

However, once you pass the £1,000 mark you must notify HMRC and register for self-assessment. You can do this online here. It is worth noting that this threshold is revenue, so amounts earnt before deducting any expenses.

Registering is quick and easy but you must do so before the 5 October following the end of the tax year in which you hit the threshold (i.e. if you started earning more than £1,000 from content in the year to 5 April 2023 you must register for self-assessment by 5 October 2023). If you expect to earn more than £1,000 income from your content in the future you can always register early – it doesn’t cost you anything.

If you need more help or information on starting out as self employed you can always give us a call on 0730 041 0801, drop us an email at hello@twentyaccounting.com or check out our other blog posts here. Were always happy to hear from you!