What Do I Need to Be Self-Employed? Your Top Tips Guide to Self-Employment

Self-employed farmer

Thinking about becoming your own boss? Whether you're turning a passion into a profession or launching a brand-new venture, self-employment can be exciting—and a bit overwhelming. But don’t worry. We’ve put together this simple guide to help you get started on the right foot.

1. Decide What You’re Offering

Before anything else, get crystal clear on what you’re selling. Are you offering a service (like graphic design or consulting), selling products, or perhaps a mix of both? Understanding your business model will shape everything else—how you price, who you market to, and what you need to register.

Tip: Start small and test your idea. You don’t need a fancy setup to get going—just a clear plan and a value-driven offer.

2. Register as Self-Employed with HMRC

In the UK, if you’re working for yourself, you need to let HMRC know by registering as self-employed. You’ll be set up as a sole trader, which is the simplest legal structure for new entrepreneurs.

✅ You’ll need:

• A National Insurance number

• Basic details about your business (name, start date, business type)

• To register by 5 October after the end of the tax year you started

3. Keep Good Financial Records

Good bookkeeping is crucial from day one. You’ll need to track your income and expenses accurately, not just for taxes, but to understand how your business is doing.

Top tools to consider:

• FreeAgent

• QuickBooks

• Xero

• Or even spreadsheets, if you're just starting out

Tip: Open a separate bank account for your business to keep things tidy.

4. Know Your Tax Responsibilities

As a self-employed person, you’re responsible for:

• Submitting an annual Self Assessment tax return

• Paying Income Tax and Class 2 & Class 4 National Insurance

• Registering for VAT if your turnover goes over £90,000 (as of 2024)

Tip: Set aside around 20–30% of your income for taxes so you’re not caught off guard.

5. Get Insured

Depending on what you do, insurance might be essential. At the very least, consider public liability insurance and professional indemnity insurance, especially if you work with clients or handle sensitive information.

Other options to think about:

• Business equipment cover

• Self-employed income protection

• Cyber liability insurance (for online businesses)

6. Build Your Brand

Your brand is more than just a logo—it's how you’re seen by your customers. Start with the basics:

• A professional email address and domain

• A simple, mobile-friendly website

• Social media profiles where your audience hangs out

• Consistent messaging and visuals

Tip: Don’t wait for everything to be perfect. Done is better than perfect.

7. Stay Organised and Plan Ahead

Time management is key when you're self-employed. You’ll be wearing many hats, so having a system for staying on top of tasks, clients, and deadlines will save your sanity.

Apps that help:

• Trello or Asana for project management

• Calendly or Google Calendar for bookings

• Notion or Evernote for notes and planning

8. Ask for Help When You Need It

You don’t have to do everything yourself. Hiring an accountant, business mentor, or even a virtual assistant can free up your time and help you grow smarter.

And that’s where we come in.

👋 Need Help Getting Started?

At Barnett & Co Accountants, we help self-employed individuals set up their businesses, manage their taxes, and stay compliant without the stress. From your first invoice to your first tax return—we’ve got your back.

Let’s make self-employment simple.
Contact us today →