Minimum required when setting up as sole trader?

[UKSBD]

My wife currently works part time for my business, earning £9k a year.

She has started walking a neigbours dog, more as just helping each other rather than as a business.

It started as she was just paid £20 a week for 3 or 4 days which meant it was under £1k a year so not done anything about it.

The neigbour now wants her to walk the dog 5 days a week paying her £30

What is the absolute minimum she needs to do regarding registering as self employed?

Can she just register, and the only thing she has to do is a self assesment at end of year?

As she will probably be earning under £2k will she have to make any NIC contributions?

Can she choose her registration date, as she previouisly assumed she woulkdn't earn over £1k this year?

If she registers now, does she have to include what she has earned from April - the day she registers as well (approx £400)?

She never intends it getting any bigger or doing much than what she is currently doing, so getting an accountant is pointless.

All she really wants is to ensure she is doing things correct with regards HMRC

Edit: Just to add, she will possibly still earn under £1,000 this year even if she does start getting £30 a week from now on, so can she wait until closer to April next year?

 

[Newchodge]

My wife currently works part time for my business, earning £9k a year.

She has started walking a neigbours dog, more as just helping each other rather than as a business.

It started as she was just paid £20 a week for 3 or 4 days which meant it was under £1k a year so not done anything about it.

The neigbour now wants her to walk the dog 5 days a week paying her £30

What is the absolute minimum she needs to do regarding registering as self employed?

Can she just register, and the only thing she has to do is a self assesment at end of year?

As she will probably be earning under £2k will she have to make any NIC contributions?

Can she choose her registration date, as she previouisly assumed she woulkdn't earn over £1k this year?

If she registers now, does she have to include what she has earned from April - the day she registers as well (approx £400)?

She never intends it getting any bigger or doing much than what she is currently doing, so getting an accountant is pointless.

All she really wants is to ensure she is doing things correct with regards HMRC

When she registers she will have to complete self assessments for the full tax year in which she is registered as self employed, so all income from 6 April.

 

[UKSBD]

When she registers she will have to complete self assessments for the full tax year in which she is registered as self employed, so all income from 6 April.

Thanks, I may have edited my post after you read it.

It's still likeky that she will earn under £1k between April 2023/24

As long as she has a good record of what she has earned, can she wait until closer to April before registering, and if she does earn under £1k not bother registering until April 2024?

 

[Newchodge]

Thanks, I may have edited my post after you read it.

It's still likeky that she will earn under £1k between April 2023/24

As long as she has a good record of what she has earned, can she wait until closer to April before registering, and if she does earn under £1k not bother registering until April 2024?

If her turnover is under £1,000 she doesn't need to register.

 

[Paul Kelly ICHYB]

If her turnover is under £1,000 she doesn't need to register.

This.

 

[MyAccountantOnline]

What is the absolute minimum she needs to do regarding registering as self employed?

If she earns more than £1,000 from self employment between 6 April 2023 and 5 April 2024 register for Self Assessment with HMRC, keep a full record of her income and expenses, complete a tax return and pay any tax due.

https://www.gov.uk/register-for-self-assessment/y/no/yes/self-employed-as-a-sole-trader/yes

 

[UKSBD]

If her turnover is under £1,000 she doesn't need to register.

If she hits the £1k in about March (which on a rough estimation she will)

Does she register on the date she knows she will go over £1K or does she have to backdate the registration date to 6th April?

I know what she earned from April will be taken in to consideration but it's the actual date of registration to put down that I don't know. (can it even be backdated?)

 

[UKSBD]

If she earns more than £1,000 from self employment between 6 April 2023 and 5 April 2024 register for Self Assessment with HMRC, keep a full record of her income and expenses, complete a tax return and pay any tax due.

https://www.gov.uk/register-for-self-assessment/y/no/yes/self-employed-as-a-sole-trader/yes

Thanks,
I've got all that, just not sure if she has to make any NIC contibutions if earning that little?

Is it similar to employment where there is a threshold before having to pay any NIC, if so, what is the threshold.

Note: she already receives her NIC credit from working for my business

 

[Newchodge]

Note: she already receives her NIC

If you mean she already pays NIC, she shouldn't if she earns £9,000 per year.

 

[UKSBD]

If you mean she already pays NIC, she shouldn't if she earns £9,000 per year.

Sorry, it posted before I finished the sentence (the forum does that for me sometimes)

No, she doesn't pay NIC but gets the credit for it

 

[Newchodge]

Sorry, it posted before I finished the sentence (the forum does that for me sometimes)

It is a kind and helpful forum.

 

[MyAccountantOnline]

Thanks,
I've got all that, just not sure if she has to make any NIC contibutions if earning that little?

Is it similar to employment where there is a threshold before having to pay any NIC, if so, what is the threshold.

Note: she already receives her NIC credit from working for my business

Yes you do have a threshold - self employed people pay two types of NIC class 2 and class 4 together with tax via Self Assessment but only when profits exceed (for this year) £12,570.

 

[eteb3]

Does she register on the date she knows she will go over £1K or does she have to backdate the registration date to 6th April?

She can wait til the end of the tax year, when she knows her total self employed income, before having to register. I believe 31 Sept 2024 will be the deadline in this case, but check.