Need to register as a sole trader for 8 months

[Silky]

Hi,
we registered our company as limited in May this year, for 8 months previously to that I was running it alongside my full time employment. Dreaded self assessment forms are looming and I've been informed that I would need to register as a sole trader retrospectively for those 8 months - could anyone advise how I do that? Is there anything I need to beware of in doing this?

Many thanks!
Silky

 

[RJH Enterprises]

There are people more qualified to answer this than me but here is my take:

You needed to register within 3 months on becoming self employed, even if working alongside your fulltime job. I beleive there are fines for not doing so and being caught. Personally I would contact you local hmrc and explain your position, by approaching them rather than waiting to be caught they will more than likely be sympathetic.

Good Luck
Rob

 

[sjt]

so when do you "start" being self employed. I'm working full time, and have a business venture being built on the side. I have no customers yet, but am having a website being built as we speak. I will be actively seeking customers in the new year. When would I need to register (I've been holding off, because I don't want to have to pay extra NI)

 

[RJH Enterprises]

If you are not producing revenue then I don't believe you would have to pay NI :|

If I was you and your business venture is costing you money I would register as you can claim some or all of your costs back as tax deductable if you keep accurate accounts

A good accountant is a must as early as possible in your self employed life - a friend who is a good accountant is even better

Please don't take my posts in this field as gospel and I will happily be corrected if wrong!

Cheers
Rob

 

[David Griffiths]

so when do you "start" being self employed. I'm working full time, and have a business venture being built on the side. I have no customers yet, but am having a website being built as we speak. I will be actively seeking customers in the new year. When would I need to register (I've been holding off, because I don't want to have to pay extra NI)

You start to be self employed when you "open the doors for trading" Anything done before that time is simply preparing to trade/

You can register by telephone - details are in this booklet

You might not have to pay extra NI. The flat rate Class 2 contribution is only £2.30 per week and not payable if you are below the exception threshold for the year. The earnings related Class 4 is payable with your tax bill if you make more than £5,435. If you already pay maximum Class 1 contributions as an employee, then you don't have to pay more as self employed, other than the 1% "surcharge" which is without limit. Rates and limits in this table.

 

[artona]

Remember that if the business you were running alongside your employed job was losing money you can possibly claim that loss against your PAYE and get a refund.

You will need to talk to the tax office so they issue you with the self employed forms but it might also be worth taking on an accountant

 

[Silky]

Remember that if the business you were running alongside your employed job was losing money you can possibly claim that loss against your PAYE and get a refund.

You will need to talk to the tax office so they issue you with the self employed forms but it might also be worth taking on an accountant

Hi Artona,
this is exactly why I want to claim for this on my self assessment form. I started work on my business in autumn last year and because of website costs, design work and also general set up costs, the costs were much higher than the revenue in the first 6 months. I pay a horrendous amount of tax from my employment (all PAYE) so am hoping to have some of this offset against the initial losses.

I definitely think it's time to get an accountant onto this....
Silky