New businesses and registering for tax

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • New businesses and registering for tax
  • Self assessment and NIC for self-employed individuals
  • Self assessment and NIC for partnerships and limited liability partnerships (LLPs)
  • Corporation tax self assessment
  • Duty to give notice of chargeability to corporation tax
  • New employers
  • Construction industry scheme (CIS)
  • VAT registration
  • Voluntary registration
  • Form 64-8 ― tax agent authorisation
  • More...

New businesses and registering for tax

Business must consider both their one-off compliance obligations when the business commences, and their ongoing requirements. The extent of a business’s tax compliance obligations depends on many factors, including:

  1. the type of entity

  2. the size of the business

  3. how many employees (if any)

  4. in some circumstances, the type of work undertaken, eg construction

  5. the type of assets in the business

  6. existence of any share reward schemes

This guidance note summarises the main tax compliance obligations for new businesses. For checklists of compliance requirements which can be used at client visits, see the Starting the business ― overview guidance note.

Self assessment and NIC for self-employed individuals

A sole trader must notify HMRC that they have started in business, as soon as the business commences, at Register for and file your self assessment tax return.

There are a number of types of taxpayer and organisation which cannot register using this service. Instructions for these groups to register are found as you progress through the screens.

Self assessment and NIC for partnerships and limited liability partnerships (LLPs)

The nominated partner must register the partnership for self assessment with HMRC using the Set up a business partnership website.

The following forms should be used to register with HMRC the members of an LLP / partners of a partnership who are not the nominated partner:

  1. Self assessment: register a partner for self assessment and Class 2 NIC (SA401)

  2. Self assessment: register a partner for self assessment if they’re not an individual (SA402) (this form is still available to print and post)

Members / partners need to complete these forms when registering a new partnership or as partners of a partnership, regardless of whether they are already registered with HMRC as self-employed in another capacity.

For further guidance on setting up LLPs, see the How to set up an LLP guidance note.

Corporation tax self assessment

Duty to give notice of chargeability to corporation tax

When a company registers with Companies House, it will be registered

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