Guide

Set up a business in the UK

Last updated: 19 September 2017

National Insurance and VAT

National Insurance

You may need to pay National Insurance if you're self-employed, depending on how much you earn. If you have employees you need to deduct National Insurance contributions (NICs) from their wages and pay those as well.

If you're employing workers from the European Economic Area (EEA) or Switzerland, and they have an A1 form, you'll have to deduct according to the rules of their home country and not pay NICs.

VAT

You must register for VAT with HM Revenue & Customs (HMRC) if your business turnover is more than £82,000.

Set up a business in the UK
National Insurance and VAT