One off trading - what to do abt Tax/NI?

ToAoB

Hi All

Before I set up my own company I did a one off trading session (in March so is within the 3 months notification period). What should I do about the tax situation?

I did speak to the tax people they have said to do a self assessment.

I am also in a current (PAYE) employed job.

How would one deal with this in terms of completing a online form for the one off trading.

Any info would be great!

Thanks

Bean_Counter

By a one of trading session, do you mean one transaction or a series of transactions?

Was the nature of the trade the same as you will do when you set up your own company or something different?

ToAoB

I was thinking of going sole trader route and took on one booking on 12th March.

Later on I decided to set up a Ltd Co on 20th March and then continued with the bookings.

Yes same nature of trading.

Bean_Counter

I would agree with the tax people that you have to complete self-assessment. In my opinion, I would say that the booking on 12 March should be included, as the intention was to be a commercial venture. Earnings in March would all be included as self-employed on the 2006 / 07 self assessment return.

Feel free to disagree with me. However, the self-assessment return will tell you to contact the tax office if you are unsure whether you are carrying out a business or not.

ToAoB

ok where do I stand with my NI? Its fair enough assumung I was doing business work.

Where is the online SA forms? I might as well complete it online but cannot seem to get to the right page on the hmrc? As I have just got my P60 and I might as well fill in the SA online.

Cheers

LittleWoman_3

Unless your taxable income from this extra income was over about 4K (sorry no time to look up the exact figure) NIC is not due, because of the small earning exemption. There is a section on the main form you could declare the income - so you don't have to complete the Self-employed forms. This is normally used to declare "one off" sources of income.

LittleWoman_3

You will need to complete Q13 on the main form. It can be a bit confusing (especially as it includes other things which may not be relevant)

Complete Box 13.1 & 13.3 with the "Net taxable income". i.e. income less allowable expenses. Put 0 in box 13.2

Of course don't forget you still have to declare everything else too - the return in a declaration of ALL Income and tax paid from all sources

LittleWoman_3

You have to register to complete the forms - registeration can take a week or 2 before you can actually start on filling in the forms! The place is on the main page, middle left side: below "do it on line".

richt71

I'd speak to an accountant if it was me to make sure so hyou don't get any nasty surprises from the tax office later. If you haven't got an accountant most will give you a free consultation to begin with.