SB : Registering as a sole trader

Equinut

Hi guys

I've been trading for almost a year now and have neglected to inform HMRC that I was doing so. Reading on their site you need to declare this to them within 3 months of starting up, otherwise you might get fined £100. Oops.

Does anyone know if it's an automatic £100 fine? I am procrastinating declaring to them as I don't want to pay £100 but I guess the more time elapses the more pressing it'll become....

kimbatty

You just need to go and get registered asap, this is just one of those things that you need to sort out now


When do your formalised accounts start from, did you actually start selling products immediately or was that just 3 months ago

Equinut

thanks for the reply! well, i haven't got to do a tax return until next year now although first sales were last summer. i'd incurred quite a few set-up costs etc. last year though.

Petmidget

The fine isnt to do with tax per se, its for failing to register for Class 2 Ni contribtions.

You can appeal but ignorance is no defence. HMRC expect every new self employed person to contact them or an accountant to ensure they are fulfilling all their responsibilities.

Unfortunately this one is quite common, many people set up and dont inform HMRC until they have completed their 1st year or a tax year end has passed which can be considerably more than 3 months.

Savvy_Sue

Petmidget wrote: »

You can appeal but ignorance is no defence.

Agreed, but some people have found that HMRC will waive the fine - IIRC this is mostly people with very small turnover who sort of fell into self-employment without necessarily intending to, IYSWIM.

Anyway, sooner you contact them, sooner you'll know ...