Who is this article for?
Individuals starting as independent contractors or starting their own business in the UK and need guidance on what to file for registration and tax purposes.
An independent contractor in the UK is a self-employed worker or sole trader that runs their own business and is responsible for its success and failures. They are not paid through the PAYE (Pay As You Earn) system and do not have the same rights and responsibilities as an employee.
In the UK, you can be both employed and self-employed simultaneously. (i.e., You work for an employer during the day and run your business after office hours). To determine if you are an independent contractor, see our article Who is an independent contractor? and the different types of contractors.
Below are the forms and registrations needed based on the UK's most common types of independent contractors. We strongly advise you to seek advice from a tax professional before filing and for assistance in filing your taxes.
Sole Trader
- Complete the Self-Assessment Tax Return after the end of the tax year (April 5)
- Pay Class 2 or 4 National Insurance
- Pay VAT
Review our sole trader article for additional requirements and how to register as a sole trader.
Private Limited Company (single-member)
- File annual accounts with the Companies House
- Pay company taxes and file a Company Tax Return with HMRC
You can file accounts together if your PLC qualifies for audit exemption:
- Annual turnover of no more than £10.2 million
- Assets worth no more than £5.1 million
- 50 or fewer employees on average
You can use either:
If you’re filing separately:
- Companies House
- HMRC
To file, you will need the following:
- HMRC online account details
- Company registration number
- Companies House online account details
For more information on private limited companies review our PLC article.