Self-employed start date

MrYorke

After a few months researching becoming self-employed, I just called HMRC to register.

The person on the end of the phone asked me for a start date....I replied "urm, today"......(thats why i'm calling obviously)

HMRC - you have to register when you start?

Me - but i'm just calling to register, i haven't actually started any work yet.

HMRC - well you have to call back when you start work.

End of conversation

I haven't actually started any work. I just want to have my business set-up for when I do get an order in. And if anyone has seen some of my previous posts, i'm still employed full-time and will be working outside these hours.

Am i missing something here? Can say, making a table, that no-one as ordered but looking to put up for sale after its completed be classed as starting work?

I'm confused

I may just call them back and ask the next 'advisor'

fengirl_2

Your business start date is when you make your first sale. You might make loads of tables and no one buys them!

PlutoinCapricorn

I can confirm this: HMRC want you to have some specific, confirmed sales/assignments before registering.

They do not want lots of people who register in advance in the hope of getting work or business on a self-employed basis and who then find that it does not work out.

MrYorke

ok great, thanks both for that bit of info.

Would have been easier if the person on the other end of the phone told me that instead of putting the phone down on me. Saying that. maybe they get people like me phoning them all the time.

But i never came across anything actually saying that in all the research i did.

Cheers again

PlutoinCapricorn

I think that you are right. Many unemployed people and those who are having trouble making ends meet on their salary may decide to become self employed without having anything lined up or understanding the requirements. They just like the idea of being their own boss and having their own business, paying tax later and being able to deduct expenses, so they are rushing to register in the hope that things will work out. I can understand why HMRC does not want to take them on at this stage, as many will not be able to find enough work to pay tax.

There may be a problem in that HMRC want you to get some work before registering, but some potential clients will want to be sure that you are registered self-employed before they give you this work! Starting with friends and family who know that you will declare your income is a way round this.

Horace

I started my business up whilst I was unemployed via the New Deal programme, I had to register a start for my business of 27 October as this is the date when I started test trading. I finished test trading on 26 April and signed off the dole on 28 April, as soon as I signed off I contacted the HMRC again so that I could apply for working tax credits (in fact I sent off for the form about 3 weeks prior to signing off). I now get working tax credits and I am waiting to hear about my class 2 NI exemption which I have applied for due to having low income.

I will be saving any money for the tax man in a separate bank account so that when the time comes everything is in order.