New Sole Trader Tax Dilemma

pennypincher3562

Hi I'm currently in full time employment, but have been trying to increase my income by setting up a small web business. This started in November - I made a loss in my first month, but moved into profit in December (this trend is continuing.) The amount of profit is small so far (hundreds.) I was out in the car, and just saw a giant poster - 'get your online tax returns in by Jan 31st.' I've not even registered for a sole trader tax code yet (I believe I have 3 months from the start of 'trading'.) Basically, I don't want to be in the position of being fined over late tax returns - I don't earn much overall, and at present don't even know how to do a tax return. Since in my opinion I started this 'business' in November am I ok to miss tax returns for Jan 31st? I intended to register a sole trader tax ID with HMRC in February. Thanks PennyPincher3562

pjclar02

Hello there

If you started in November 2011, then you don't need to file a tax return until January 2013.

So your first tax return will be November 2011 through to 5 April 2012. Registering in February sounds like a sensible move - although you won't be penalised if you don't get round to doing so!