The Revenue has claimed that early registration will assist start-ups from the outset and avoid them drifting into the hidden economy.
To aid this initiative, the existing registration form has been shortened and been made more straightforward to complete, and a telephone helpline has been set up to take registrations over the telephone.
In addition, businesses contacting the Revenue to register will be issued with a copy of Starting up in Business, a guide covering all essential tax issues including National Insurance and tax credits.
To encourage entrepreneurs, a new leaflet P/SE/1 Thinking of working for yourself? will explain how to register and receive a free video, showing what is involved in starting-up a new business.
Commenting on the campaign Primarolo said: ‘The Government is committed to helping small business to start up and grow and help them understand and meet their obligations.
‘But we are not prepared to allow honest businesses to be undercut by those in the hidden economy who are determined not to pay their dues, so we are also introducing a penalty for those who fail to notify the Inland Revenue about their new businesses. Our intention is fairness for all.’
Under newly introduced Revenue regulations, the newly self-employed will have 3 months to register – or face a penalty of £100.
These measures followed recommendations from the Lord Grabiner’s report on the informal economy.
They included an effective requirement to notify the Inland Revenue on or soon after the start of business, and that more and better help should be offered to new businesses in understanding their responsibilities.
The registration for Class 2 National Insurance contributions (NICs) will also be treated as notification for tax and Class 4 NICs purposes – so that the newly self employed will only need to notify the Inland Revenue once.
The P/SE/1 leaflet is available from the Helpline for the newly self-employed, Inland Revenue Enquiry Centres, Jobcentres, Business Links, and other appropriate locations and on the Inland Revenue’s website.
- The Helpline for the Newly Self-employed opens today on 08459 15 45 15. It is open seven days a week from 8am to 8pm and calls are charged at local rates.
- The Tax and Benefits Confidential Advice line is on 0845 608 6000, open 8am to 8pm Monday to Friday and 8am to 5pm Saturday and Sunday.
- The Starting Up in Business guide is also available from the helpline and on on the Revenue’s website
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC
An examination by the Public Accounts Committee (PAC) has revealed serious concerns relating to HMRC’s plans