Register with HMRC – CWF1 Form
1. Register online - you will need to sign into your business tax account and add Self-Assessment. You will need a Government Gateway user ID and password to sign in. If you do not have a user ID for a business tax account, you will be able to create one.
2. You will receive a letter with your Unique Taxpayer Reference (UTR) number within 10 days (21 if you are abroad). You will need your UTR to file your tax return
3. You will then receive another letter with an activation code for your account. You can get a new activation code if you do not receive it, or you lose it. If you have previously registered with HMRC and have a UTR you will need to create an online account where you can send future tax returns
Top Tip—Set up a business bank account. Does not need to be a high street bank. Consider Starling/Tide/Revolt/Monzo
What records to keep?
Accounts paperwork will need to be kept for 7 years. This is a hard or digital copy of all the sales, invoices, and receipts you claim as expenses.
What tax you pay
Income tax is payable on total income* over £12,570 NI Class 2 is £158.60 if profits over £6,515 (You can pay voluntary. You need 35 years to qualify for state pension) NI Class 4 is 9% profits over £9,568
What can you claim?
Insurance – A must have for businesses Print Post & Stationary
Advertising Personal mobile phone - If used for business
Computer costs (including new items) Subsistence – Food & Drink
Use of home as office - Currently £6/week Continued training costs
Professional subscriptions Research materials
Travel costs – Claim 45p per mile (up to 10,000) 25p over 10,000
If you are doing your own tax return the items claimed need to be wholly and exclusive for business purposes. If using an accountant keep note of all business expenses and they will advise what is allowable.
Tax Payments
Started trading after 5th April 2021
Prepare accounts up to 5th April 2022
Deadline to submit tax return and pay tax is 31st January 2023
Accounting Records
This is where we excel (without using excel). Unity is at the front of technology. We aim to keep you working on your business while we look after the accounts. Using our simple to use template we can keep the time spent on accounts at a minimum but the impact of up-to-date, live information at your fingertips.
Now what are you waiting for? Now is the time to get back the hours spent on accounts and partner with us to grow your business.
