Profit below threshold - Self assessment when?

[Shauntan]

I haven't yet registered my online freelancing business.
Only made just under 8000 GBP.

First income in October 2016. I havent registered it yet. I made less than the threshold.

Questions:
1) Should I register now?
2) When should I do the self assessment?
3) When should I do the return??
4) I was told the first tax year can be 18 months, is that accurate?
5) Do I need to do the self assessment by 06-april or 06-october?

Please let me know. I'm panicking as the date is approaching.

 

[Scalloway]

1. Did you have other income in the year, eg PAYE? If so it will affect your tax payable. You have until 5 October to register.

2. Any time after 5 April but before 31 January next year.

3. Any time after 5 April but before 31 January next year.

4. You can have the option to pick a year end for your accounts other than 31 March/5 April. So you could have your financial year run 1 October to 30 September. This means you can pay tax twice on your first year's profits so I wouldn't recommend it.

5. You have until 31 January 2018 to do your self assessment.

 

[SteveHa]

You've exceeded the small profits threshold for Class 2 NI purposes. You have to register.

 

[Mark Burchell]

Not very helpful advice from myself but I really recommend seeing an Accountant, they're not that expensive for small businesses like me and yourself. I was estimated around 300-400.

 

[Shauntan]

Thanks for all the replies!

@Scalloway
If I register after 5 april, will I have to pay taxes for that year (05-apr-2016 - 05-apr-207) on January 31, or will it be the extended tax year? If its the former case, then I wont have any taxes to pay.
Thanks

@SteLacca
For NI purposes when am I required to be register by and make payments?

 

[SteveHa]

Re NI, you have a stroke of luck, since Class 2 is now a part of self-assessment rather than being paid separately each quarter. The normal notification deadline of 6 October 2017 will apply.

With regards to taxation, regardless of your accounting period, you are taxed in the first year on the profits arising between commencement of self-employment and 5 April. In the second year you will be taxed on the 12 months to your accounting date (which may mean that you have an overlap period and overlap profits). Your first tax liability will still be payable by 31 January 2018.

NB. With Making Tax Digital, and the lack of clarity from HMRC, there's a good chance that the basis periods will change.

 

[Scalloway]

Thanks for all the replies!

@Scalloway
If I register after 5 april, will I have to pay taxes for that year (05-apr-2016 - 05-apr-207) on January 31, or will it be the extended tax year? If its the former case, then I wont have any taxes to pay.
Thanks

If you started trading in October 2016 you will need to pay taxes for the year to 5 April 2017 regardless of when you register. The date that matters is when trading starts, not the date of registration.

 

[DontAsk]

Don't forget to put enough aside for payments on account