Is it worth it? "De-registering" as self employed.

Luvplacebo

Is it worth "de-registering" as self employed for a few months? I've just got a new job so I won't be continuing with my business or completing any surveys until my a-levels are over so not until July. Is it worth stopping it officially or will it have no effect on the tax I pay at my new job? I earned under the threshold needed to pay NI so I have a small earnings exception certificate but I don't know whether having another source of significant income will have an effect on that.

fengirl_2

I dont know why you are even registered as self employed if you are not liable to tax or NIC. You pay class 1 conts on your salary, so it doesnt affect your small earnings exemption for class 2.
I would de-register and declare any casual fees to your tax office at the end of the year - they can put a restriction in your code to collect any tax due.

freelancemermaid

i would ask the tax office, they're very helpful in my experience.

what you might want to do, is explain that you won't have a self-employed income for a few months/however long you reckon and therefore would like to be exempted from class 4 national insurance contributions. that way, you won't have to pay any additional NI, but can keep your business open for future use

as far as i'm aware, all income needs declaring even if it's low and with your job, presumably you'll be going over the personal allowance.

Luvplacebo

fengirl wrote: »

I dont know why you are even registered as self employed if you are not liable to tax or NIC.

I'm registered because its a legal requirement, I know some people don't but I don't want to risk getting a £500 fine. Thanks for the info, i'll definately give HMRC a ring

fengirl_2

Its not a legal requirement to register with HMRC if you are not liable to tax or NIC. The only legal requirement is to notify chargeability. Why would HMRC want hundreds of records for people who are not paying tax?

Nosht

Luvplacebo wrote: »

Is it worth "de-registering" as self employed for a few months? I've just got a new job so I won't be continuing with my business or completing any surveys until my a-levels are over so not until July. Is it worth stopping it officially or will it have no effect on the tax I pay at my new job? I earned under the threshold needed to pay NI so I have a small earnings exception certificate but I don't know whether having another source of significant income will have an effect on that.

I always thought that students did not pay tax on earnings. ????

N.

fengirl_2

Students are not exempt from tax - they have a tax free allowance of £6475, the same as everyone else. They generally dont actually pay tax because if they only work during the vacs, they are liekly to be below the tax threshold.