http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htmYou can register online, but I recommend using the 2-page form and keeping a copy (I always keep a copy of any form I sign):
You can download and print an application (
http://www.hmrc.gov.uk/leaflets/se1.pdf) to post to HMRC (Newcastle)
OR fill in the form for yourself & then submit details online/phone (number on form; you do not have to sign!)
Use your own name as the business name, else you will have to open a separate bank account.
You are a Sole Trader.
Online registration:
https://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept-name=&location=40&origin=http://www.hmrc.gov.ukTick the box at the end of How to Pay your Class 2 National Insurance contributions (allowances are out of date here) - unless you are a serious earner.
I advise do NOT fill in the Direct Debit form.
See also Small Earnings NI exemptions:
http://www.hmrc.gov.uk/forms/cf10.pdfYou HAVE to register within three months of starting a business. Obviously, if you are not making a profit, HMRC will not be bothered, BUT, by registering and showing a loss, you can offset it against future profits (when you hit the jackpot).
As mentioned by Talisman, you can alternatively offset losses against other income in the same year, but it may be harder to convince HMRC in the first year(s).
The upside of the three months rule? If you register today, you can charge all your expenses for the last three months.