Do I need to register my business?

Do I need to

 register my business

& when should I do it?

This is a question that many people have lurking at the back of their minds for some time during their new business journey.
What tends to happen is that people have an idea for a business and they either go straight into it full time and get it all set up – or they build it up slowly over time, often on the side. Either way, the idea is that you will be making some money at some point, right?
And when you do that you might be wondering if you need to tell someone about the money you are making, and you'll wonder what is expected of you.

In this short post I'm going to give you a run down of what you need to do to keep your business on the right side of the law, and also give you some peace of mind.

If you have already set up and registered your business as a Ltd or Limited company, then this won't apply to you in the same way, because your business will operate under different rules.

Are you

A UK business?

The information I am sharing here is relevant to businesses in the UK, which is where I am based.

But wherever you are in the world, when you start a business there are checks you need to make. Read through the post and then check your government website to see what you need to do.


I'm Naomi

I help people start businesses simply and without stress.

I'm sharing the start up info you need, so it's easy to understand & implement.

If you have a new business question you'd like help with, you can reach out to us here.

what you need to do

when you start earning money

I'm going to keep this simple and just give you the need to know facts, so that you can get your business set up and know that you are doing everything by the book.

So if you already have, or are setting up a business in the UK, there's one golden rule you need to remember...

You need to let HMRC know as soon as you make £1,000.

Now, this doesn't mean money you make from selling off your personal items (clothing on eBay etc). It means if you are selling goods or services in a business capacity i.e. to make money.

So if you have been setting up something on the side and you make your first £1,000, that is when you need to register. And what you need to register for is called Self Assessment

What this does is tells HMRC that you are now making an additional income, and so you need to declare your earnings and pay any tax due.

Don't be put off though as it's not difficult. And don't panic, because even if you've made £1000, not all of that will necessarily be profit. And you only pay tax on your profit.

When do you register with HMRC

And how do you do it?

You must register for Self Assessment and complete a tax return by the 5th October in the tax year after you received your income.

The UK tax year always runs from 6th April - 5th April. 

So if you made over £1000 between 6th April 2021 and 5th April 2022, then you will need to register by 5th October 2022.

Even if you still have a full or part time job and receive a salary, if you have made over £1000 in the last tax year from this new business, then you will need to register and file a tax return to account for those earnings.

When you register, this essentially means is that you are registering as a Sole Trader. The majority of businesses in the UK operate as a Sole Trader.

This is not the only business structure available (more on that soon), but it is great if you are in the early stages of setting up your business, or you are testing your business idea to check if it all works out. People often opt for this structure if they are still in full or part time employment elsewhere, and as such are just making some additional money on the side. 

You can double check whether this applies to you by visiting the Gov.uk website here. You'll be asked a few questions and then be given all the information on how to register.

it's that simple!

Starting a business doesn't need to be hard, but it's often the unknown that trips us up.  Not knowing what is expected of us, and being totally confused when we search for answers is the real issue.

I've been right where you are, and asked the very same questions several years ago. It can be tricky to know what is expected of you, but it doesn't have to be that way.

It is my mission to provide you with a cut down, more straight forward understanding of what you need to do and when, making it easier and quicker for you to get your business up and running.

I'd love to know what you think, if this helped you, and if you are going to be registering for Self Assessment this year. Please leave a comment below, or reach out and ask a question here.

here's to your massive success!

get up & running faster

by taking The Simple Start-up Strategy™ course!

To help you to make super smart progress, I’ve put together the PERFECT COURSE to show you how to set your business up the RIGHT way. 

A series of easy lessons will walk you through all the start up essentials – building solid foundations, finding your audience, naming and registering your business, knowing which structure to use (Ltd vs Sole Trader) setting up your emails, budgeting, branding & lots more. And as a bonus there are some great freebies in there too.

The Simple Start Up Strategy™ is achievable, affordable, and it's available now!

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