Backdated tax

Hoping_for_change

When I started a new job in mid-2011 it was on a freelance/self-employed until around mid-December (around 6 months). Even though I wanted to go on the books at the company straight away they said to just do it without worrying about tax and ni straight away - it was part-time until October, then full-time from then until the end of April, when I was made redundant. During the period I wasn't paying tax and ni I estimate I earned approx £2-2.5k, and I didn't declare this work. Between starting the job then going on the books I had several letters from the student loans company asking me whether I was working. After I was made redundant I have had two small tax returns. When I put in a back-dated self-assessment for 2011-12 how much will I be fined, as I'm still not sure if I earned under the tax threshold

Savvy_Sue

I think you need to phone HMRC and register for self assessment ASAP, but I don't think you've missed the deadline for submission yet so there shouldn't be a fine at all.

Queries

Also, what legitmate costs you can charge-back being self-employed i.e income less legitimate costs (backed-up by receipts) gives you a net-income. Also, being low-paid you can re-claim any NI 2 you have been paying.

Also, since the Unions have been destroyed, when you should have been paid through the books, you are now classed as self-employed, which means you have no right to being off sick, etc..

Somebody I know works for the University, yet s/he is classsed as being self-employed, but s/he pays PAYE and NI at source. If s/he is ill, the payment
is nowt. Cheers Cameron, we are in this together!! Ha, Ha!!!

back_against_the_wall

The personal tax allowance for 2011 - 12 is £7475. This is the amount you can receive as income from any source before becoming liable to tax. This is well above the £2 - 2.5k you say you earned in that tax year so on that basis you are not liable to tax and questions of being fined etc do not arise, including having to submit a self assessment tax return. If you are unemployed at the moment (like me) you don't have to register for self assessment or anything else tax related until you take up a new occupation, either on an employed basis in which case you come under PAYE and not self assessment, or self employed in which case you will eventually have to notify HMRC of your status and submit an SA tax return in due course when your business starts trading and making profits or losses etc.

Hoping_for_change

(Text removed by MSE Forum Team)

I'm currently finding out the exact date I went on the books, in order to then be able to call HMRC and tell them the dates I was self-employed so I can then set-up an online tax return form. Also, is that correct that I don't need to do a self-assessment tax return for 2011-12 until I re-enter employment, as I'm currently unemployed? Doesn't seem right to me...

Also, just to recap, this is how my employment for 2011-12 tax year went: April 2011 - June 2011 employed, paid tax and ni, July 2011 to late 2011 self employed (but didn't register with HMRC), late 2011-April 23 2012 employed; April 23 - present unemployed.
Also, I've had two tax returns, one for the tax I paid on earnings in employment April 2011 - June 2011 and the other I believe is for late 2011-April 23 2012 period of employment.

kitty1801

Hi. You need to register as self employed straight away. You can do this online at hmrc.gov.uk or by calling 0845 915 4515 (phoning is probably the best option) You will then be set up & sent a UTR (around 6 weeks wait) and you can then file online. You will not be charged late filing penalties for self assessment as the online filing date is 31 Jan 2013. Your details may be passed on to be risk assessed as it is more than 3 months from the start date of self employment but generally, nothing much should happen as long as everything is declared correctly when you complete your return.

If you have had tax refunds for 2011-12, you should show this on your tax return but make sure the refund(s) were definitely for 2011-12 otherwise you will do yourself out of a refund.

You should contact the student loans company directly to let them know you were self employed. If you are due to pay your loan back due to the level of your s/e income (which it doesn't sound like you are) then this will be calculated & charged when you complete your tax return. You need to show on the return that you have an income contingent student loan & show any deductions taken through your PAYE income - this will be on your P45.

Can't think of anything else at the moment that you might need to know.

kitty1801

Hoping_for_change wrote: »

Also, I've had two tax returns, one for the tax I paid on earnings in employment April 2011 - June 2011 and the other I believe is for late 2011-April 23 2012 period of employment.

Just noticed this part - you shouldn't have had separate refunds for the same tax year. You need to check the calculations that were sent to you to check which years they are for. You should also probably contact the tax office directly on 0845 300 0627 to let them know you should be self assessed for 2011-12. Only contact them once you have registered first though. The offices are open tomorrow 8am until 4pm and generally are quiet between 8-9am and 2-4pm

Savvy_Sue

Hoping_for_change wrote: »

Thank you back_against_the_wall , Queries and Savvy_Sue for your replies. This has really helped. Can any of you give me an email address to contact you at for more help/advice on this matter please?

If you need further advice you are better posting on the board than relying on unknown users on a forum giving advice off the boards.

EXCHANGING PERSONAL DETAILS

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