What to do when you become self-employed?

It is an exciting time, you have just set up your new business (or thinking about doing so), but what do you need to do and who do you need to tell?

· First you need to register with HMRC to let them know you are self-employed, and that you will need to submit a self assessment tax return (if you earn over £1000).

This is easy to do online – just head to:

https://www.gov.uk/register-for-self-assessment/self-employed

Once you have registered, you will receive a Unique Taxpayer Reference number from HMRC. You will also receive an activation code through the post – log on and use this code to activate your account. Then when it is time to do so you can log on and submit your tax return online.

· Set up a separate bank account – this isn’t a legal requirement if you are a sole trader (although it is if you are a limited company), but it makes it so much easier when it comes to the bookkeeping, to keep your business and personal expenses separate. It will save you a job of having to go through all your bank statements working out what is business related and what isn’t.

If you are a sole trader, you can just use a different account, it doesn’t have to be a business account. Starling bank offer a Sole Trader bank account which is free to use and can be opened up online within minutes.

· Think about how you are going to keep track of receipts and expenses for your new business, it could be a good old spreadsheet or you could invest in some software. It’s always best to keep on top of your bookkeeping and make sure you know where your business stands from a financial point of view. If you don’t want to take this on yourself then look into outsourcing to a bookkeeper, to take this away from you.

· Get marketing – now you are registered, you have a bank account and you are ready to market yourself, get on social media and shout about your new business! Find out where your ideal clients are hanging out (Facebook, Instagram or Linkedin) and get yourself on there and get talking to people. If this is all new to you it’s sometimes best to focus on one social media platform at a time and do it really well, than be inconsistent across two or three platforms.

Networking is another great way to get your name out there, I know it isn’t everyone’s cup of tea but you need to push yourself out of your comfort zone and give it a try!