Self Employed in the UK — What You Need to Know (MTD-Ready Guide)

Becoming self-employed is exciting — but the early steps can feel overwhelming when you’re not sure where to begin. The good news? Getting set up is much simpler than most people realise. With the right knowledge and support, you can start your business confidently and avoid common tax mistakes from day one.

This clear, beginner-friendly guide walks you through everything you need to know to start self-employment in the UK, including what’s changing under Making Tax Digital (MTD).

1. Registering as Self-Employed with HMRC

Your first step is officially telling HMRC that you’ve started working for yourself. You’ll need to register for:

  • Self-Assessment

  • Class 2 National Insurance

This can be done online through your Government Gateway account.
If you’re unsure how to do it — or want someone to handle the process for you — I can help.

MTD Note:
Over the next few years, HMRC is transitioning self-employed individuals into MTD for Income Tax Self Assessment (ITSA). Registering correctly now makes the transition smoother when MTD becomes mandatory for your income level.

2. Understanding Your Responsibilities as a Newly Self-Employed Person

Once you’ve registered, you’ll need to:

  • Track your income and expenses

  • Keep accurate business records

  • File a Self-Assessment tax return each year

  • Pay any tax and National Insurance due

You don’t need a complicated system — just a clear, consistent method that works for you.

Staying organised now prevents stress later, especially as HMRC moves more processes into the MTD digital reporting system.

3. What You Can Claim as Business Expenses

Many new business owners pay more tax than they should because they’re unsure what expenses are allowed.

Common allowable expenses include:

  • Tools, equipment & materials

  • Workwear, uniforms, PPE

  • Training, courses & professional development

  • Business travel, mileage or fuel

  • Mobile phone & SIM costs

  • Software, subscriptions & website fees

  • Advertising & marketing costs

  • Home-working allowance

  • Accountant fees

Claiming the right expenses ensures you only pay tax on your true business profit — not more.

4. Keeping Your Records Organised (MTD Friendly)

Bookkeeping doesn’t have to be complicated or time-consuming. You can use:

  • A simple spreadsheet

  • A folder for receipts

  • A bookkeeping app

  • Or I can set everything up for you

Good record-keeping:

  • Makes your tax return quicker

  • Reduces mistakes

  • Maximises your tax relief

  • Helps you prepare for Making Tax Digital, which will require digital record-keeping for most self-employed individuals

If you’re unsure which method is best for your business, I can guide you.

5. When Your First Tax Return Is Due

This is a common area of confusion.

If you start self-employment anytime between 6 April 2024 and 5 April 2025, then:

  • Your first tax return is due by 31 January 2026

  • Your tax payment is due the same day

Unsure which tax year you fall into? Ask me — I can tell you instantly.

6. Already Feeling Lost? You’re Not Alone.

Most new self-employed people feel overwhelmed at the beginning — and that’s exactly why I’m here.

I can help you with:

  • Registration with HMRC

  • Bookkeeping setup (simple and MTD-ready)

  • Completing your tax returns

  • CIS refunds

  • Reading & responding to HMRC letters

  • Organising your records from scratch

You don’t need everything perfect.
You just need the right support.

Need Help Getting Started?

If you’re unsure where to begin — or you want everything set up properly so you don’t run into problems later — get in touch.

I make the process simple, calm, and stress-free, so you can focus on growing your business while I handle the numbers.

If you found this guide helpful, make sure you follow me for more simple tax tips, self-employed advice, and MTD updates:

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You can also explore more helpful articles on my website to support your business journey.