Registering your business with HMRC

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’

New to accounting? Click Here!   

Sole Trader – this is probably what you want!
You run your business on your own – and keep all the profit!

You run your business with other people – and share the profit.

Limited Company
Separate yourself from the business – seek accountant advice!

Limited Partnership
A partnership that can protect you from losses – seek accountant advice!

To VAT or not to VAT

do you want to VAT register?

Bite the Bullet

Register with HMRC now.

For most new photography businesses – the chances are that you don’t want to register for VAT until you have to! It would only really be a benefit to you if your clients are mainly other businesses – so may apply to ‘Commercial Photographers’. For most other photography businesses, it will just mean you will need to increase your prices, employ an accountant, and have a shed load of extra paperwork you don’t need!

As your business grows, you may find you are legally obliged to register for VAT.

Read more about VAT and registration   

Time to get the ball rolling? Don’t worry, HMRC aren’t as scary as they may seem at first. Signing up is easy, they are generally pretty helpful and friendly when you need to speak to them, and as long as you don’t lie – they are also pretty fair!

If you know which type of business you are registering as (probably Sole Trader) just go ahead and do it – but be aware, from that moment on you will need to fill out your tax return each year!

Register your business with HMRC