HMRC before april?

[RSJ]

Hi, I'm going self employed, I was thinking as soon as possible.

I know people register by October for tax, which is then due January 31st, but as the tax year is April, what happens if I register in february? do I need to submit details to april? or do I do nothing until October?

 

[StevensOnln1]

The tax year runs from 6th April to 5th April. October is the deadline to register as self employed if you started a business during the previous tax year. If you start a business between now and 5th April 2025, you would need to register as self employed by October 2025, you would then file a tax return by 31st January 2026 which would cover the period ending 5th April 2025.

The simplest thing is to register as self employed once you have actually started your business, then HMRC will issue a notice to file your self assessment tax return, after the end of the tax year.

 

[RSJ]

Thanks for the reply. So I can just start trading now, and register as self employed later in the year, so long as it's before October?

I was just worried about the 2 months before april.

Sorry to go over it again, I just overthink everything

 

[DWS]

Thanks for the reply. So I can just start trading now, and register as self employed later in the year, so long as it's before October?

I was just worried about the 2 months before april.

Sorry to go over it again, I just overthink everything

Yes you can, but why wait to register?
Just register as soon as you start to trade and get your UTR number ready to submit your self assessment after April.
Too many start ups in my opinion delay registration and submitting accounts and then get a shock at how much they owe in taxes with little time to pay., which may also include payments on account towards the following year.

 

[Lisa Thomas]

Your accountant will sort all of this for you. Mistakes can be costly. There are a good few on this forum to choose from but if you don't find one, feel free to dm me for a recommendation.

 

[Newchodge]

It is simple.

Start your business whenever you like. Your business financial year will always end on 5 April (although no one will worry if you do your accounts to 31 March).

As soon as you have started, tell HMRC that you are self employed. They will send you various numbers and things so that you cann activate your account to submit self assessment.

If you start trading before 5 April you will need to file your first self assessment by the following 31 January. A bit like speed limits that is a limit, not a target. I would aim to file your self assessment during June/July. That way, if there is a problem with your activation code or anything else, you can sort it without panic.

Once you have done your SA you will know how much you will have to pay by 31 January.

Using an accountant helps.

 

[Ziggy2024]

You're supposed to notify HMRC within 3 months of commencing self employment that you have started trading. The 5th October deadline is if HMRC haven't sent you a tax return.

You can make up your accounts to whatever date you like, you don't have to use 31st March (although it is much easier to do so as you need to report to HMRC in line with that date).

I would second the advice to seek an accountant to assist you.

 

[MyAccountantOnline]

Hi, I'm going self employed, I was thinking as soon as possible.

I know people register by October for tax, which is then due January 31st, but as the tax year is April, what happens if I register in february? do I need to submit details to april? or do I do nothing until October?

As others have said register now - it's one less thing to worry about (and not overlook) when starting in business.

It wont effect you having to complete a tax return, it'll still be required even if you dont register immediately.

 

[David Griffiths]

You're supposed to notify HMRC within 3 months of commencing self employment that you have started trading. The 5th October deadline is if HMRC haven't sent you a tax return.

That's interesting. Is there a provision in the law that overrides section 7 of the TMA 1970? Either way I agree that notification should be straight away. Getting into the habit of leaving everything until the deadlines is not a good idea.

 

[Daybooks]

That's interesting. Is there a provision in the law that overrides section 7 of the TMA 1970? Either way I agree that notification should be straight away. Getting into the habit of leaving everything until the deadlines is not a good idea.

Very interesting.
I am not sure if they still refer to registering within three months of starting as I don’t think it has force of law. Reminds me of when HMRC used to insist directors had to file a tax return but did not have the force of law (Alexander Steele v HMRC 2018).

It was probably just used as a convience for them to send out the right additional pages back in the day. Registration doesn’t give you a registration number as such it just gets you onto self assessment if you are not already doing it.

If you’ve been given notice (to complete a return) under the s8 TMA 1970 and complete any self employment income thereon without having “registered” you’ve don’t appear to have broken any laws.

I still wouldn’t discourage anyone too.