Am I self employed?

radford

I was self employed tutor/trainer and filing SA for 10+years. When my husband suddenly died in 2006 I stopped working immediately. I have submitted my SA each year since but without reference to SE other than the first year saying husband died and not doing any more training jobs.
However I have since decided to retrain to tutor individuals rather than groups. I have bought books, materials and been on training courses during 2009. I am building up experience by volunteering within schools and groups and intend to advertise privately once my final qualification is finished in the summer 2010.
I am now filling in SA for 2008/9 and wonder whether I should put any of the expenses down for SE or whether I am not yet 'trading', cos I haven't earned any money yet. Can I just revive my old business and continue or do I start again as a new SE person? How do I claim the expenses I am currently incurring?

fengirl_2

Your business ceased in 2006, therefore you have to inform HMRC that you have recommenced, but only do this once yoou have your first pupil. That will be the start of your new tradng year and you need to include your books and materials in that year's accounts. You cannot claim anythig, but whatever yoou buy will educe your tax bill. HMRC will require you to pay class 2NIC from the date the new busness commences.

radford

Thanks for the info. So just a case of keeping the receipts for when I actually start earning, at which point I have to register with HMRC as SE. Will I be able to include the costs of retraining? I have also joined a professional organisation (as a student member) this year - can I include this fee?

Rolo_Tomasi

The costs of retraining will not be an allowable deduction against income as it is giving you skills you currently lack and not just updating expertise.

I also do not think student membership of an organisation would be an allowable deduction.

fengirl_2

You register as soon as you receive your first income.

radford

Thanks Rolo and Fengirl for your help. you both sound very competent and I feel reassured.