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

[mcplums]

[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]

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

 

[mcplums]

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]

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

 

[Mr D]

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]

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]

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]

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]

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]

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/