What must self-employed individuals register for regarding taxes?

Self-employed individuals are required to register for Self Assessment and National Insurance contributions to ensure they fulfill their tax obligations.

Self Assessment is the system used by HM Revenue and Customs (HMRC) to collect income tax from individuals and businesses. This process involves submitting an annual tax return where self-employed individuals report their income, expenses, and any other relevant financial information. It is crucial for self-employed individuals because it allows them to calculate the correct amount of income tax they owe based on their earnings.

Additionally, National Insurance contributions are necessary for self-employed people since they contribute to various state benefits and their future pension. There are specific classes of National Insurance contributions that apply to self-employed individuals, and registering ensures they pay the correct amount.

Overall, both registration for Self Assessment and payment of National Insurance contributions are essential for complying with tax legislation and maintaining access to benefits and pensions in the future. This combination reflects the comprehensive obligations of self-employed individuals concerning their tax responsibilities.