New rules for registering late as self-employed? Cannot find details on HMRC website!

sashasasha81

I've been scouring forums and the HMRC website for a good hour and still cannot find out the new rules on registering late as self-employed, or what the penalty is specifically.

I heard that the 3 month grace period was abolished last year, but I cannot find any details on this on HMRC's gargantuan website! Yes I did try calling the help centre but the waiting times were too long and I need to find out asap.

Can someone help? And does anyone know what the penalty charge is, and what the exceptions are?

Thanks!

Horace

The fine is £100.

Typically there are no exceptions if they think you have been self employed for longer than you have stated.

How long have you been self employed without registering?

BoGoF

Does this help

http://www.hmrc.gov.uk/about/new-penalties/failure-to-notify.pdf

BoGoF

Horace wrote: »

The fine is £100.

Typically there are no exceptions if they think you have been self employed for longer than you have stated.

How long have you been self employed without registering?

Not any more !

sashasasha81

Horace wrote: »

The fine is £100.

Typically there are no exceptions if they think you have been self employed for longer than you have stated.

How long have you been self employed without registering?

I've been self-emlployed and registered for one of my jobs for about 5 years (that's all kosher and sorted). But I think I have a new cause to register for another business: I started taking my arts hobby more seriously earlier this year (March/April). I began making work to put out commercially and paying people to help me with it). I have only made a loss so far though, so there is no taxable profit. Would this help me?

sashasasha81

@ BoGof - The document is still quite vague! Is the £100 penalty just for any period of time where you haven't informed them? It used to be that you were allowed a 3 month grace period. Is there zero tolerance now?

Would it be the same penalty, for example, if you hadn't registered for more than a year (example only!), or you hadn't registered after one month? It just seems a bit generalised.

BoGoF

The £100 penalty no longer applies. It's a percentage of what should have been paid.

You have until 31 January following the tax year concerned to notify HMRC to avoid a penalty.

I don't think you have much to worry about as I assume you will already be paying Class 2 NIC for your existing business and submitting Tax Returns?

Just write and tell them of this new source.

sashasasha81

BoGoF wrote: »

The £100 penalty no longer applies. It's a percentage of what should have been paid.

You have until 31 January following the tax year concerned to notify HMRC to avoid a penalty.

I don't think you have much to worry about as I assume you will already be paying Class 2 NIC for your existing business and submitting Tax Returns?

Just write and tell them of this new source.

Ah, I see. In that case I should be ok. I haven't had to pay tax for years due to always being below the threshold.

So, if I now register my new 'job' for an additional self-assessment registration, at what point will I find out whether or not I'll be fined? Do I need to write to them separately or just apply for an additional self-assessment registration?

Thanks.

steve1980

sashasasha81 wrote: »

Ah, I see. In that case I should be ok. I haven't had to pay tax for years due to always being below the threshold.

So, if I now register my new 'job' for an additional self-assessment registration, at what point will I find out whether or not I'll be fined? Do I need to write to them separately or just apply for an additional self-assessment registration?

Thanks.

Are you already registered for self assessment/self employed status? If so you don't add another business, you just add it to your self assessment at the end of the (tax) year.

Horace

sashasasha81 wrote: »

I've been self-emlployed and registered for one of my jobs for about 5 years (that's all kosher and sorted). But I think I have a new cause to register for another business: I started taking my arts hobby more seriously earlier this year (March/April). I began making work to put out commercially and paying people to help me with it). I have only made a loss so far though, so there is no taxable profit. Would this help me?

If you are already self employed then you do not need to register another business with the HMRC, you incorporate your income and outgoings on your self assessment form as normal only you include it from all your self employment if you see what I mean.

The people that you pay to help you are they suppliers, sub contractors or employees? If they are employees then you will need to notify the HMRC for PAYE purposes.

Mistral001

BoGoF wrote: »

Does this help

http://www.hmrc.gov.uk/about/new-penalties/failure-to-notify.pdf

This is a good document. It has a helpline at the end for newly self-employment people.

Also at the start of the document it says:


"We use penalties to stop people who do not take care from gaining an unfair advantage "

I do not think the OP falls into this category, so I would not be afraid of giving them a ring.