With HMRC deadlines on the horizon, you might find yourself wondering, “How long does it take to register for Self Assessment?” This is particularly likely if you have just started self-employment or landlord work, and expect to declare untaxed income this year.
Registering for Self Assessment can appear complex, and correct timing is crucial. Luckily, this guide explains everything you might need, walking you through Self Assessment registration step by step. Read on for an overview of Self Assessment registration, expected timeframes, and how to streamline the process. If you want to simplify tax and avoid penalties, you’re in the right place!
Why Do You Need to Register for Self Assessment?
You must register for Self Assessment if you receive taxable income that has not already been taxed (e.g. via PAYE by an employer). Here are some relevant scenarios which might mean you need to register:
- Self-employment: Running your own business as a sole trader (self-employed individual) puts you in charge of declaring taxable income via Self Assessment.
- Capital gains: If you have made money selling shares or other assets (e.g. a second property), you might be liable for Capital Gains Tax.
- High earnings: If your annual income exceeds £100,000 or £150,000, you may need to register for Self Assessment (depending on the tax year). As of the 2024/25 tax year, this is no longer a requirement for those receiving only PAYE income.
- Partnership: As part of a business partnership, you must register for and file Self Assessment to maintain financial transparency with HMRC.
- Property income: Rental income from property or land above your tax-free “property allowance” (typically £1,000) requires registration.
- Other untaxed income: Foreign income, dividends, tips, commissions, or any other taxable income not collected via PAYE often should trigger a Self Assessment registration.
- HMRC request: If HMRC ever notifies you to file Self Assessment, you should register and comply (even if you do not think you owe tax). If you believe you do not need to register for or file Self Assessment, contact HMRC as soon as possible.
Depending on your income type(s) and circumstances, you can sometimes retain part of your income completely tax-free and avoid Self Assessment registration. For instance, sole traders earning up to £1,000 (the “trading allowance”) do not need to register or notify HMRC of this income.
Landlords receive an annual “property allowance” of £1,000 and (strictly speaking) are not required to register for Self Assessment before earning £2,500. However, any landlords earning £1,000–£2,500 must contact HMRC. Any additional taxable income streams must, of course, be treated separately.
In general, if you are earning outside PAYE, it is best to confirm whether you need to pay tax. HMRC provides a free online tool to check whether you are required to register for Self Assessment. Note also that registering for Self Assessment does not necessarily mean that you will need to pay Income Tax.
How Long Does It Take to Register for Self Assessment?
Thanks to modern technology, registration for Self Assessment is relatively quick. You can expect to register within minutes. However, depending on your reason for registration and existing circumstances, there are slightly different processes involved. For instance, you might need to wait for details to be sent by post.
If you already have a business tax account, then you can register for Self Assessment by signing in and requesting access to Self Assessment. From here, you can confirm your identity online and get access to Self Assessment instantly. Alternatively, you can request your activation code in the post; however, this will take up to 10 days.
If you do not already have a Government Gateway account or UTR (Unique Taxpayer Reference), because you have never used Self Assessment before, then you must register. After registering, you should receive your UTR and activation code within 15 days (or longer if you live overseas).
If you have submitted a Self Assessment previously, but did not send one last year, then you will need to re-register to reactivate your account. Although you should already have a UTR, you will likely need to wait for an activation code to be sent by post within 10 days (or 21 days if you live abroad).
In any case, the simplest solution is to follow HMRC’s step-by-step tool to get your Self Assessment up and running.
If you have registered for Self Assessment but have not received your UTR within a reasonable time frame, feel free to contact HMRC. In some instances, HMRC may need you to provide further details or request your UTR again. HMRC also provides a tool estimating how soon you will receive a reply to your query.
At the time of writing, HMRC predicted that a reply would be sent within five weeks. Note that this could increase considerably during busy times of the year. Therefore, it is advisable to register for Self Assessment as soon as possible, to mitigate potential delays and avoid complications such as late tax submission.
Step-by-Step Registration Process for Self Assessment
Follow these steps to register successfully:
1. Gather Your Essential Information
When registering, expect to be asked for personal details (relating to identity and income). When registering online, HMRC typically requires:
- Full name
- Home and/or business address (UK or abroad)
- Date of birth
- NI (National Insurance) number
- Daytime telephone number
- Email address
HMRC typically also asks the reason why you are registering for Self Assessment (e.g. self-employment or another income type); make sure that you are clear about this.
2. Create Your Government Gateway Account
To access your Self Assessment account online, you will need a Government Gateway account (which acts as a central hub for HMRC services). If you already have a business tax account, simply sign in via Government Gateway and add Self Assessment to your account.
If you do not have a Government Gateway account, or if you are unsure, it is best to start with HMRC’s “Check how to register for Self Assessment” tool. You will be asked questions regarding your reasons for registering, and whether you have submitted Self Assessment before.
Ultimately, you will probably be directed to sign up for Government Gateway via the sign-in page. From here, simply follow the on-screen guidance to get your user ID and Self Assessment service.
3. Receive Your UTR and Activation Code
Once you have signed up for your account and registered for Self Assessment, you should receive your UTR (Unique Taxpayer Reference) and Self Assessment activation code by post within a couple of weeks. Use these to complete registration online. Your Self Assessment activation code is typically valid for only 28 days.
4. Complete Form SA1 (if applicable)
If you are not self-employed but need to register for Self Assessment (e.g. as a landlord or due to other taxable personal income), you will need to fill in and submit form SA1. This can be done online (via Government Gateway) or by post. Submitting this form will notify HMRC to set up your non-self-employment Self Assessment account.
What Happens After You Register for Self Assessment?
Once HMRC has confirmed your registration, the next steps are:
1. Receive Details By Post
HMRC should send a letter with your 10-digit UTR, as well as your 12-digit activation code. You will need to use your UTR frequently in the future, so keep it safe or make a note of it. The activation code will be used only once.
2. Activate Your Account
Once you have received your UTR and activation code, use the activation code to set up your Government Gateway account for Self Assessment. You usually get 28 days to use your activation code before it expires.
3. Prepare For Deadlines
Once your Self Assessment registration and setup is completed, you must prepare for the upcoming deadlines. Assuming you registered online successfully by 5 October, HMRC will be expecting your Self Assessment return and tax payment (if applicable) by 31 January.
When you’re ready to submit your Self Assessment return, why not check out our comprehensive guide? We also have a handy article explaining how to pay Self Assessment tax online. Once you’re familiar with the system, it’s pretty straightforward. The key is to plan well ahead!
How AbraTax Makes Self Assessment Easy
AbraTax Self Assessment is designed to simplify and streamline your returns:
- No cost: Self Assessment submissions with AbraTax are currently free. We encourage you to submit feedback so we can keep enhancing our service!
- Step-by-step guidance: AbraTax provides handy summaries and guidance along the way, helping you to fill in the forms with confidence and in no time.
- Error-checking: As you fill in your tax forms, AbraTax’s built-in validation system checks for errors as you go.
- Handy dashboard: Manage returns across multiple users and/or tax years, all in one place!
- Secure cloud-based system: AbraTax is safely accessible from any device or location, using GDPR-compliant security. We are HMRC-recognised, meaning you can trust us to submit your tax returns securely and efficiently!
AbraTax’s user-friendly process means less guesswork and more peace of mind. Get ready to simplify your tax today!
Conclusion
Registering for Self Assessment is a quick process. However, certain other steps – such as waiting for your UTR and activation code to arrive by post – can take a bit longer. That’s why it is essential to plan now and beat the 5 October registration deadline. To give a fairer view, perhaps the question “How long does it take to register for Self Assessment?” could be rephrased as “How long does it take to prepare for Self Assessment?”.
If you want to get ahead of the curve, why not register for Self Assessment today and submit your returns via AbraTax for free?