self employed

davidrob

I'm currently a student. Started doing paid work for a media related company on a freelance basis in January 2008.

By April 2008 came I hadn't earned enough to go over the tax threshold so I didn't do anything about it.

Over the last year April 08 - April 09 I have earned enough to start paying Tax. I knew that I could then file my tax return any time after the begining of April 09 and have to pay the tax by January 2010.

When I went to register as self employed today (so I could get everything sorted for getting my tax return done as soon as possible) it informed me that if I didn't register as self employed within 3 months I would incur a £100 penalty.

I presume there is absoultly no way out of this? Is there even any point going to the tax office to argue my case (claiming that I didn't know, and that at no point did I not intend to not pay tax?).

Thanks ,
David

Horace

That is true you are liable for a penalty because you didnt register as self employed when you started into self-employment.

Even if you don't pay tax you still have to register your self-employed status because you will pay tax on your profits and there are your NI contributions to consider.

Unfortunately, pleading ignorance is not an excuse in law. Be thankful that they haven't stung you with a £1000 fine:eek:

I dont know if pleading your ignorance will help to be truthful.

*MF*

Hi ...

Horace is correct - and many have been caught out in just the way you have.

Just in case this helps, and there are other aspects you need to be aware of - in advance - go to the link below - and about half way down the post - you will find many of the basics that you must know about being self employed:

Sorry - but I suspect you are stuck with the fine, just make sure it is the last one you have to pay.

Here is the link (go half way down, ok):

http://forums.moneysavingexpert.com/showpost.html?p=19785575&postcount=1

max2009

Did the media company pay your wages into a bank account,pay by cheque or pay you by cash ? Did you invoice them each time ? Soon enough the paper trail will lead to you so you might as well be honest with them.I think more than likely they will fine you just £100.

davidrob

Thanks for all your responses.

They paid me into my bank and I invoiced them.

At no point by the way did I think about even pretending what date I had started or lying, I just wondered if there was any legitimate way out of it, something I could say.

Thanks for your help,
David

ukric

Only may have to, not must.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

Second paragraph.

I'd say when you call them, ask under what circumstances a penalty would not be charged.