Help needed - what to do regarding tax

fezerati

I'm hoping someone on here can help although I think the best solution may just be to stump up the cash and pay an accountant to resolve the matter.

Basically, November 2011 I had an RTA leaving me hospitalised for a few months. I had started a job a week before this accident

April 2012 - I was out of hospital and unable to return to work full time. My employer very kindly supported me by allowing me to work for them on a freelance basis and I began invoicing them each month for the number of hours worked just (Sat working from home)

November 2012 - back in hospital for surgery and haven't been able to work since due to nerve damage in my arm and having limited movement.

In this time I haven't earned much money due to only working part time hours from home. I don't claim any benefits and I've lived from savings during majority of this time. No real outgoings and not many expenses as I'm lucky to be in a position where I don't have a mortgage etc.

I have earned less than £4000 since November 2012 (Started working in April on a freelance basis).

I haven't paid any tax and understand i need to. I've got no experience with this which is why I'm here... what do I need to do to register and is there any good guides anyone can point me towards on how I should be representing my earnings.

i just want to ensure I don't owe anything and everything is above board and legit.

I want to avoid using an accountant if I can due to my earnings being so low and their fees being such a large proportion of what I have earned on a self employed basis during this period.

If needs be I will just go and see one but ideally I want to do this myself as It shouldn't be too complicated due to how basic my accounts would be. I understand the deadline is April but I may be wrong.


Thanks in advance, any help is much appreciated.

tyllwyd

There are lots of people who know about tax on the cutting tax board. But as a start ... if you started working in April 2012 on a freelance basis, and we are coming up to the end of the 2012/13 financial year on 5 April 2013, so if you have only earned £4000 in this financial year you are below the threshold for income tax, so you won't have income tax to pay. You can also ask for a low earnings exemption for NI, so you shouldn't have a bill as such.

You should really have registered with HMRC as self-employed in April 2012, so there may be a fine. But once you do register as self-employed, you will need to complete a self-assessment form for 2012/13 sometime after 5 April 2013 and before the end of January 2014. It's all straightforward, and since you won't have a tax bill to pay, it probably isn't worth paying an accountant.

BUT ... if your only client is your former employer, that puts a big question mark over whether you were properly self-employed. That's beyond my knowledge, so I'd recommend asking the chaps on the cutting tax board for their comments before doing anything else.

jobbingmusician

Have a look at the first post in the thread on mystery shopping on the 'up your income' board. Lots of advice about registering as self employed, and what to do. I think they are very unlikely to fine you if you 'fess up to them before they find you out!!!! - and you are very unlikely to owe them much - they may even owe you! If you ring them they may even give you advice about whether you ARE/WERE actually self-employed or not.

fezerati

Thanks chaps, I read through some of the 'up your income' thread and some of the information was very helpful. I'll give them a call later and have a chat with someone hopefully to try and ascertain exactly where I stand

Thanks once again and any other advice anyone can give that may read this is more than welcome.