tax return for first time

lynne1307

Hi there, some advice would be appreciated., Background is.

Have been PAYE for 25+ years, have a part time (2 days per week) job which isn't taking me over tax threshold at moment, which I've had for 18 months (beforehand was a higher rate tax payer - it's a long story!)

Am now doing some work for another business - but want to be self employed. Have done maybe 10 days worth of work for them so far.

My question is, when I have registered as self employed - which I believe you can do online - do I then have to fill out a self assessment by the end of this January? As this self assessment would be looking at last years? or the year before? Not sure how thse things work.

I am keen to make sure I pay my tax and don't get lumped with a big bill that i don't want !.

many thanks
Lynne

Football_Widow_2

Simple answer to this is no, you won't complete a self assessment for this January if you have only recently become self employed. You need to register - the first day of self employment is the day you did the first day of work. Once registered you will receive information from HMRC as to when you need to complete your self assessment. Remember you can complete your self assessment from April onwards of the new financial year the January deadline is exactly that a deadline, you would be best not leaving it until next Janauary as that is when fines come in if you are late submitting your information.

Hope this helps.

FW x

Savvy_Sue

lynne1307 wrote: »

Am now doing some work for another business - but want to be self employed. Have done maybe 10 days worth of work for them so far.

What you have to remember is that it's not really your decision whether you're self-employed by this company or they're employing you, and it's not theirs either. It's HMRC make the final call, and getting it wrong is costly for the company, if not for you.

I don't have the link handy, but go to the HMRC website and look at the self-employment pages, there is a questionnaire there which will help you see whether you can do what you want.

lynne1307

Thanks FW. Need to get my accounts sorted now !

lynne1307

apologies Savvy S, my words are misleading.
I will carry on in my part time (PAYE roll) whilst trying to grow my own business. At some stage I hope to go full time self employed.

Savvy_Sue

What I said still stands, however. If a company wants YOU to perform a particular role for them, and if you go to their premises and use their equipment, then the fact that you don't work fixed hours is irrelevant, you're still (probably) employed.

lynne1307

own equipment, work at home, travel on own steam, own expenses.
sounds self employed?

lynne1307

sorry should of also said that i can work (and hopefully will work) for other businesses and am also doing my own work under my own sole trader name (fitness coaching).

Savvy_Sue

one part of the test for self employment is whether you could get someone else to do the work if you didn't fancy it / were too busy?

basscadette

You will file a tax return next January if you started your business in the year 2011/12. This January is for the year 2010.2011 (so up to last April, at which point you had no business).
Once you register as self-employed HMRC will remind you regularly lol. I go tmy notice about August last year to remember to file and I got a reminder over Christmas.

As for SE, you sound like I was when I started out. I had only one client for six months (an old boss) but I was definitely self-employed, produced quotes for work, agreed a submission date, invoiced for work done, sought other clients, own website etc.