I never registered as self employed but I have submitted self assessment. Are they the same thing!?

mcplums · Apr 30, 2019

[Edit: I meant to say I never registered as sole trader, not self employed (although again, no idea what the difference is really)]

So I've earnt income outside of my full time employment going back to the 17/18 tax year and continuing to this day. I have submitted the self assessment for the 17/18 tax year properly declaring all my additional income and paying the tax. But, I never actually registered as self employed.

Did I **** up? Will I need to pay a fine? What I can't figure out, is whether registering for self employed is actually any different from actually registering for self assessment. If there is a difference, what is it!? Under what circumstances would someone need to do one but not the other?

Thanks

Scalloway · Apr 30, 2019

If your self assessment includes a page with your self employed income and expenditure then I think you have done all you need.

mcplums · Apr 30, 2019

Yeah, it looks like it. It seems to be that registering for self assessment is the same thing as registering as sole trader. But it is confusing!

paulears · Apr 30, 2019

Have you got a UTR number? That seems to set your status.

Mr D · Apr 30, 2019

mcplums said:
Yeah, it looks like it. It seems to be that registering for self assessment is the same thing as registering as sole trader. But it is confusing!

Not quite.
Some non-self employed have to complete self assessments too.

A number of company directors (who are of course employees) have to complete self assessment returns every year.

Scalloway · May 1, 2019

Official HMRC advice

https://www.gov.uk/set-up-sole-trader

To set up as a sole trader, register for Self Assessment and file a tax return every year.

SteveHa · May 1, 2019

HMRC are likely to exclude Class 2 NI from your tax calculation if you haven't registered as self-employed, which will mean a potential underpayment and exposure to potential penalties in the event of an enquiry.

You should, at the very least, register as self-employed for NIC purposes.

mcplums · May 1, 2019

I do have a UTR, and I checked my return, it includes Class 2 so looks like I'm all good.

In the link above about being a sole trader, it simply says 'To set up as a sole trader, register for Self Assessment and file a tax return every year.' i.e. registering for SA is the same thing as registering as sole trader, it seems.

SteveHa · May 1, 2019

Not for NIC purposes. Registering for self-assessment can be done for a variety of reasons (rental income, untaxed income from investments/shareholdings etc.) which don't carry a separate charge to NIC. Self-employment, on the other hand, does. Unfortunately (and as is typical) HMRC systems are not joined up, and so even if you tell HMRC that you are self-employed, this will not necessarily be communicated to the NICO, and will result in HMRC ignoring class 2 NI (to the point that they actually remove it where it is correctly included by the taxpayer or their accountant).

STDFR33 · May 1, 2019

The questions is quite scary considering that you are a qualified accountant.

https://www.ukbusinessforums.co.uk/threads/best-book-resource-for-small-business-accounting.374526/

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I never registered as self employed but I have submitted self assessment. Are they the same thing!?

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