When to register as a sole-trader confusing!!

[Imrank]

I have only recently started taking on some freelance IT work. I was first paid in Nov-18 and after that in Feb-19. I have expenses as well which almost negate the income (income has been well less than personal allowance). I know i dont have to pay tax on this but do I need to register with HMRC?

if yes then when do I need to at latest? and when I need to send self assessment? Is it 5th April or 5th October? Very confusing!!!

Thanks

 

[Darren_Ssc]

I'm not really qualified to answer but afaia you can earn up to £1000 a year without having to declare it?

I'm sure someone else can clarify this later?

 

[Imrank]

I'm not really qualified to answer but afaia you can earn up to £1000 a year without having to declare it?

I'm sure someone else can clarify this later?

I have earned more than £1000 figure. First payment was in November 2018. I have not earned more than £3000 so far since November 2018. Since then I have had expenses almost the same amount. I have not yet registered with HMRC, my question is when I should ?

 

[Darren_Ssc]

I have earned more than £1000 figure. First payment was in November 2018. I have not earned more than £3000 so far since November 2018. Since then I have had expenses almost the same amount. I have not yet registered with HMRC, my question is when I should ?

Earnings are income less expenses.

More info here:
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

You really need to speak with an expert on such matters though.

 

[Imrank]

Earnings are income less expenses.


You really need to speak with an expert on such matters though.

Thanks. That is why I have joined this site as I was expecting some experts input. I dont know the answers because I have started as sole trader only recently.

 

[Bronco78th]

Not an expert....

But I believe you should now register as a Sole Trader and do the HMRC Self assessment. Otherwise the longer you leave it the harder it becomes to back date everything especially if your paperwork is not in order......and obviously worse if your caught...... Id Just Get it out the way now ASAP.

The £1000 is for people earning abit of literal pocket money by selling 2nd hand goods on eBay and such like. If your doing 'proper' work you will bust this cap easyily.

 

[WaveJumper]

HMRC recommend that you register as a sole trader as soon as you can after you start trading. The latest that you can register is by 5th October in your business's second tax year. You could be fined if you don't register in this time.

As mentioned above the longer you leave it the harder to back date expenses etc

Check the HMRC link should give you all you need to know
https://www.gov.uk/set-up-sole-trader

 

[Newchodge]

Register as soon as you like. You will need to complete a self assessment return by 31 January 2020, but you need to get organised well before then as you need various codes etc to do that.

 

[MyAccountantOnline]

I have only recently started taking on some freelance IT work. I was first paid in Nov-18 and after that in Feb-19. I have expenses as well which almost negate the income (income has been well less than personal allowance). I know i dont have to pay tax on this but do I need to register with HMRC?

if yes then when do I need to at latest? and when I need to send self assessment? Is it 5th April or 5th October? Very confusing!!!

Thanks

It's 5 October in your second tax year, so 5 October 2019 for you - see here.

I really wouldn't delay it though, no advantage in doing so. I'd do it now.

 

[Imrank]

Thanks all that was helpful really!

 

[AWA Training]

Love the wealth of knowledge in these forums.