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Newly Self-employed? Registered? You should!

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People who started in self-employment before 31 January must register with the Inland Revenue by 30 April if they want to avoid a £100 fine.

Paymaster General Dawn Primarolo said, “Time is running out for the newly self-employed to register their business with the Revenue.

Following Lord Grabiner’s recommendation we have introduced a penalty for those who fail to notify us within three months of starting up in business. This will help us to ensure new businesses comply with tax and benefit rules from the outset, enabling us to provide support early.”

The Helpline for the Newly Self-Employed is on 08459 15 45 15 and is open 8am to 8pm, seven days a week. Calls are charged at local rates.

Detail

New Regulations 1 require self employed people to register with the Inland Revenue to pay Class 2 National Insurance contributions (NICs) within three calendar months from the end of the calendar month in which they start self employment. Class 2 contributions help to build up entitlement to the state retirement pension and other social security benefits. People who fail to register may incur a £100 penalty.

People with self employed earnings below the Small Earnings Exception limit (£3955 from 6th April 01) must register, but they will not incur a penalty if they register late.

By registering for Class 2 NICs a self-employed person is also treated as registered for Self Assessment income tax.

Registration can be carried out by telephone by calling the newly self employed Helpline or by sending a completed form CWF1 to the NICs Office in Newcastle-upon-Tyne. Form CWF1 is included in the leaflet P/SE/1 `Thinking of working for yourself?’ available at local Tax Offices and on the Inland Revenue’s website

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