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Whether you’re currently studying, or you’re on the home straight of your final year, finding a job role that offers you financial freedom and flexibility can be difficult. It’s why so many people are starting side hustles.

It’s completely up to you what you want to do, whether you want to be a freelance writer, online tutor, cleaner, or contractor (to name a few). Whatever you decide, any type of self-employment comes with the responsibility of registering yourself with HMRC, and of course, paying your own taxes.

We’re here to guide you through when to register your self-employment, and how much tax you’ll need to pay.

When do I need to register as self-employed?

Hold your horses, because you might not need to (at least not yet). The trading allowance means you can earn up to £1,000 in a tax year (from 6^th April to 5^th April) from self-employment or ‘miscellaneous’ income, without needing to tell HMRC or paying tax on it.

If you go past that threshold, it’s time to decide how you’re going to register as a business. There are several options here, such as forming a limited company, or you could keep things simple and register yourself as a sole trader.

Choosing the sole trader route means you need to register for Self Assessment by 5^th October following the end of the tax year you began trading.

Going from uni deadlines to tax deadlines is confusing – we know. So, if that’s gone over your head, don’t worry!

As an example, let’s say you began self-employment in July 2023. That falls into the 2023/24 tax year, so you’ll need to register for Self Assessment by 5^th October 2024.

How do I submit a tax return?

You can submit your Self Assessment tax return online, or via post. If you want to send it through the post, you’ll need to call HMRC to .

Filing your Self Assessment online is the quickest and easiest way to do it. If you get stuck, you can speak to HMRC’s webchat advisors for advice, or find an accountant who can guide you through the complete process.

Check the GOV.UK site out for advice on .

Tips to setting up your own business after you’ve graduated

So, you’ve finished university and have decided to set up your own business. First of all, congratulations! Going from graduation to running you own business is a big step, but we to make the transition much smoother.

1. Find your ‘why’

Why do you want to start the business? Being financially free with no boss to listen can be a major plus, but it also means you won’t be able to learn from their mistakes and experience. Business owners make a heap of sacrifices, but if you have a reason that motivates you, it’ll keep you strong during tough times.

2. Choose a business structure

This isn’t as scary as it sounds (we promise). Because ‘self-employed’ isn’t a legal business structure in itself, you’ll need to choose whether you want to be a sole trader, limited company or in a partnership.

It’s important to do research on what each of these means, along with their tax obligations. Don’t worry, the decision you make isn’t final. For example, if you set up as a sole trader and your business grows, you can always switch to a limited company.

3. Carry out market research

This is important because without it, you’ll never fully know who your target market is. You can do this by sending out online surveys, and keeping an eye on your competitors to ensure you find that gap in the market. This might sound obvious, but sometimes the results can be very unexpected!

4. Open a business bank account

This isn’t a legal requirement if you’re a sole trader, but it’s usually helpful to keep your personal and business expenses separate. If you’re a limited company, you need to do this by law before you begin trading!

5. Write a business plan

Writing a business plan doesn’t just help you understand your goals, but also potential investors and stakeholders. A plan keeps you on track, and can also help you implement things like pricing structures, what type of employees are needed, etc. Utilise ¹û¶³Ó°Ôº Innovation & Enterprise when exploring business ideas, writing your business plan, networking and joining a startup incubator.

Digital reporting rules explained

You probably heard a lot of news about the new digital reporting rules in January 2024, especially if you already love selling on the likes of Vinted and Etsy.

Despite the media horror stories, nothing has actually changed in terms of tax. The new rules just mean digital platforms (such as Vinted, eBay, Amazon and so on) will be responsible for collecting information on the money their sellers earn and how many sales they make, and then reporting this to the tax authorities.

This means if you are trading on any digital platforms as a business (don’t worry if you’re selling old clothes, we don’t mean you!) then you’ll need to register for Self Assessment as soon as you’re over the trading allowance, so record your bookkeeping accurately and ensure those figures you submit are accurate too!

Top tip: Remember to record and claim all your expenses, as this reduces your tax bill. An expense can be anything used wholly and exclusively for your business.

We have a guide on that will help if you need further advice!