Questions regarding self employment

sebrantigan

Hi all,

I am currently employed full time but looking into becoming self employed and have a query regarding self assessment for income tax and NI.

I was previously self employed but earnt £1,500~ gross in a 2 year period and made around £300 profit in that time period, but I was under 18 and also was and still am under the £7,000 tax threshold (or whatever it is now) as far as I know would not have paid tax on my earnings so did not declare it which was obviously a stupid thing to forget to do, I know!

My query is am I liable for a fee for not informing HMRC of my earnings and am I able to get this subsidised due to my circumstances? Should I declare this ASAP when I register self employed the second time round?

Also I have just got a business account with my bank is it wise using this for keeping records of income/expenditure to keep recorded transactions separate from personal transactions?

Many thanks if you can help I am quite green to the concept of tax especially when it comes to self assessment and I hope you don't get asked this too often.

Kind regards

Seb Brantigan

pjclar02

Hello Seb

In the circumstances I would ignore your previous period of self-employment and just register from scratch this time. It is unlikely HMRC would find out about the previous time, and it sounds like there was no tax loss to them.

Yes - it is a good idea to keep your business transactions separate as much as possible, so using a separate business bank account will make things easier.