SELF-EMPLOYED people who fail to register their status with the Inland Revenue, within the first three months of setting up their business, could be liable for a fine of £100, warns the Association of Chartered Certified Accountants (ACCA).

Alan Hynd, ACCA's spokesperson for the North, said: "The first few months of setting up a new business can be extremely hectic and stressful, so it is quite easy for people to forget or not know their obligation to register as self-employed with the Inland Revenue. Even for those who submit tax return forms, it is still necessary to register."

Careful financial planning is crucial in the first few months of setting up a new business which is why is it extremely important for businesses to have registration with the Inland Revenue as a priority in their start-up plans.

For the cost of a phone call or a stamp, they could save themselves £100.

"Following registration, the Inland Revenue will automatically arrange for self-employed flat rate National Insurance (NI) contributions to be paid.

Self-employed businesses do not have to register for VAT until the annual turnover reaches £55,000."

Newly self-employed businesses can register with the Inland Revenue by calling the Newly Self-Employed Helpline on 08459 15 45 15, or by filling in a self employment form and returning it in the post.

Alternatively a chartered certified accountant can assist in taxation issues surrounding new businesses.