Unregistered Business In UK

[Caledonia Websites]

Hi everyone,

New to this forum, looking forward to contributing and using for support.

I am trying to convince someone, who has been trading since Jan 2019 but still isn't registered as Limited Company (nor HMRC for purposes of Sole Trader) that he/she needs to register immediately.

Please can people comment and explain what kind of trouble this person can get into so that i can show them all the comments. Even more worrying is that there is a property in which the public goes to and receives products/services/etc.

 

[Mr D]

Ok so not a limited company. Is a sole trader.
The time limit for registration as a sole trader is what these days?

 

[Caledonia Websites]

Ok so not a limited company. Is a sole trader.
The time limit for registration as a sole trader is what these days?

They are not Limited or Sole Trader.
i am setting up my own small part-time business as Sole Trader, and I read that I will have to register within 3 months of trading. I think it the same for Limited Company at Company House

 

[intheTRADE]

https://www.gov.uk/set-up-sole-trader

 

[SteveHa]

6 October after the end of the first tax year in which self-employed income was received is the time limit. (TMA 1970 S7). Penalties for failure to notify are tax geared and based on a percentage of tax due for that year.

Typically, if someone is tardy about registration they will also be tardy about submitting Tax Returns, which leads to escalating penalties of up to £1,300. In the event that Returns remain outstanding HMRC will eventually estimate tax liability. In the event that an HMRC estimate is for a year more than four years old the estimate cannot be displaced by submitting the Return (though if the actual Return gives rise to a liability higher than the estimate then HMRC have powers to bring that higher amount into charge.

 

[Mr D]

They are not Limited or Sole Trader.
i am setting up my own small part-time business as Sole Trader, and I read that I will have to register within 3 months of trading. I think it the same for Limited Company at Company House

Well they are not limited until such time as they register a limited company. So that option is out.
They are sole trader. SteLacca says 6th October after end of first tax year. Which would be what I was thinking.