You need to register with HMRC as soon as (or before) you start ‘trading’ as your business. It doesn’t matter if you aren’t making a profit yet – and if you make a loss, you should get a tax rebate! If, like many new small business owners, you are still in employment elsewhere, don’t worry – this won’t affect how they pay you, or how you pay your taxes with them.
When registering yourself / your business with HMRC, there are 4 main types of registration. Unless you have been advised otherwise by an accountant, or are starting a business with someone else, you are probably a ‘Sole Trader’
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