Declare Self Employed?

burns863

Hi Guys,

Hopefully someone will be able to help me out! I'm looking to boost my income a little and have gone round and round in circles about the best way to do so.

My question is, when do I get to the point that I need to declare myself as Self Employed? If for example I was to think of a service I could offer around the village and I was to post out a few leaflets for advertisement, my income from it would likely be small. Bit none the less... do I need to declare anything to cover the earnings?

Any help is much appreciated

Thanks

fengirl_2

You only register as self employed once you start to receive income - then you have to register as soon as possible. This is certainly true if you have other income.
If however, the self employment is your only source of taxable income and the profit is below £5435 in this year, then you are below the NIC limit and dont have to register.

burns863

thank you for your reply

I'm currently fully employed. So once I started to earn a second income through my own means (ie not being employed by another employer) then I need to register? Makes sense!

Is there a lot of paper work to do?

lozza1985

Really easy, I had to register as self employed for doing avon (I also work full time) and I just rang them up, they took my details and explained that because I already pay national insurance that they would send out a form to fill in and send off, so that I wouldn't have to pay it again, you do need to earn less than £5k (round about that figure from what I can remember!) from your self employed job for that form to be valid. They were really nice and helpful.

burns863

lozza1985 wrote: »

Really easy, I had to register as self employed for doing avon (I also work full time) and I just rang them up, they took my details and explained that because I already pay national insurance that they would send out a form to fill in and send off, so that I wouldn't have to pay it again, you do need to earn less than £5k (round about that figure from what I can remember!) from your self employed job for that form to be valid. They were really nice and helpful.

Fantastic! That sounds easy enough Thanks for your reply Lozza!

OddjobKIA

You do need to register withn 3 months..or you might get a £100 fine

mrsmoneyworries

OddjobKIA wrote: »

You do need to register withn 3 months..or you might get a £100 fine

Must admit, I thought it was this too . . I have already done it - I don't want a fine just as i'm starting out

fengirl_2

First of all, the 3 mth registration period has been abolished, now you have to register as soon as possible.
If you are just earning casual, one off fees of some kind under £2500 a year, then you dont register as self employed, you just write to your tax office at the end of the year and tell them.

burns863

Any extra earnings will definitely be below £2500... Most likely under £500! Please can you elaborate a little on the writing to the tax office part?

Thanks for everyones help

JennyJewell

Hi burns863
The best thing to do would be to give Inland Revenue a ring and as lozza1985 said they are very helpful and not as scary as people sometimes think Personally I would do it straight away - they will know all the rules so you won't get in a mess
Best of luck with your new venture
Jenny

burns863

JennyJewell wrote: »

Hi burns863
The best thing to do would be to give Inland Revenue a ring and as lozza1985 said they are very helpful and not as scary as people sometimes think Personally I would do it straight away - they will know all the rules so you won't get in a mess
Best of luck with your new venture
Jenny

Thank you Jenny