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I'm a bit annoyed.
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@ Chesky!
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
I got 'fined' a £100 for registering late a few years ago (I blame my accountant - he should have told me! - but seriously they do/did)not accept ignorance as a reason) I was of retirement gage so didn't have to pay NI contributions either.
The 'rules' have now been relaxed somewhat. Here is an overview:
Late Registration for income tax & NI
The deadline for registering as self-employed has recently been relaxed. It used to be the case that you had to register within 3 months of starting in business. It is still a good idea to register as soon as possible (you cannot register before you actually start in business) but the deadline is now 5 October following the end of the tax year in which you start.
So if you start working just before a tax year ends, say on 1 March, the last date before you must get your registration done is 5 October of the same year. Giving you a window of about 7 months. However if you start 2 months later, on 1 May which is just inside the new tax year, you have until 5 October of the following year before you absolutely must register. A window in this case of 17 months.
The purpose of this deadline is that it gives HMRC time to set you up on the self-assessment system so that you can send in your return and pay your tax on time.
The penalty for failing to register on time is up to 30% of the unpaid tax, provided late registration is down to carelessness – for deliberate failure penalties are higher. And the penalty is on top of the tax itself, and also interest.0 -
pmlindyloo wrote: »I got 'fined' a £100 for registering late a few years ago (I blame my accountant - he should have told me! - but seriously they do/did)not accept ignorance as a reason) I was of retirement gage so didn't have to pay NI contributions either.
The 'rules' have now been relaxed somewhat. Here is an overview:
Late Registration for income tax & NI
The deadline for registering as self-employed has recently been relaxed. It used to be the case that you had to register within 3 months of starting in business. It is still a good idea to register as soon as possible (you cannot register before you actually start in business) but the deadline is now 5 October following the end of the tax year in which you start.
So if you start working just before a tax year ends, say on 1 March, the last date before you must get your registration done is 5 October of the same year. Giving you a window of about 7 months. However if you start 2 months later, on 1 May which is just inside the new tax year, you have until 5 October of the following year before you absolutely must register. A window in this case of 17 months.
The purpose of this deadline is that it gives HMRC time to set you up on the self-assessment system so that you can send in your return and pay your tax on time.
The penalty for failing to register on time is up to 30% of the unpaid tax, provided late registration is down to carelessness – for deliberate failure penalties are higher. And the penalty is on top of the tax itself, and also interest.
Right, thanks! So I started 8 April 2012 (so 2012-13 tax Year), so I need to register by Oct 2013, which I have done. So hopefully I should be OK.
Most helpful, thanks(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
pmlindyloo wrote: »The penalty for failing to register on time is up to 30% of the unpaid tax
Let me see, now, 30% of beggar-all is, um, ......0 -
Well, that's certainly telling you, seven-day-weekend.
Let me see, now, 30% of beggar-all is, um, ......
I did think that myself.....:)(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
If you are not liable for tax then you can appeal the fine, I did and got it back."A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0 -
Thanks missile, good to know!(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
pmlindyloo wrote: »I got 'fined' a £100 for registering late a few years ago (I blame my accountant - he should have told me! - but seriously they do/did)not accept ignorance as a reason) I was of retirement gage so didn't have to pay NI contributions either.
The 'rules' have now been relaxed somewhat. Here is an overview:
Late Registration for income tax & NI
The deadline for registering as self-employed has recently been relaxed. It used to be the case that you had to register within 3 months of starting in business. It is still a good idea to register as soon as possible (you cannot register before you actually start in business) but the deadline is now 5 October following the end of the tax year in which you start.
So if you start working just before a tax year ends, say on 1 March, the last date before you must get your registration done is 5 October of the same year. Giving you a window of about 7 months. However if you start 2 months later, on 1 May which is just inside the new tax year, you have until 5 October of the following year before you absolutely must register. A window in this case of 17 months.
The purpose of this deadline is that it gives HMRC time to set you up on the self-assessment system so that you can send in your return and pay your tax on time.
The penalty for failing to register on time is up to 30% of the unpaid tax, provided late registration is down to carelessness – for deliberate failure penalties are higher. And the penalty is on top of the tax itself, and also interest.
It's a question often asked on the cutting tax board, and tbh replacing the 3 month rule with 'asap' is hopeless. It makes no sense for someone like 7DW who isn't due to pay any tax anyway, but IMO it does make sense to register regardless because while no tax is due NOW, things can change, and it's better to be in the system early rather than realising belatedly that you should have been in, IYSWIM. And IMO a bit shocking that Prothet's accountant didn't casually mention it sooner ...Signature removed for peace of mind0 -
Have you got a link to where you got that from please?
It's a question often asked on the cutting tax board, and tbh replacing the 3 month rule with 'asap' is hopeless. It makes no sense for someone like 7DW who isn't due to pay any tax anyway, but IMO it does make sense to register regardless because while no tax is due NOW, things can change, and it's better to be in the system early rather than realising belatedly that you should have been in, IYSWIM. And IMO a bit shocking that Prothet's accountant didn't casually mention it sooner ...
Start here
http://www.hmrc.gov.uk/sa/register.htm#2
and to here
http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/about/new-penalties/faqs.htm
Do these help?
The only thing that is constant is change.0 -
seven-day-weekend wrote: »Thanks missile, good to know!
My circumstances are not the same as yours but I hope you find this extract from the letter of appeal I wrote to HMRC helpful?
++++++++++++++++++
There is no specific requirement in TMA 1970 for a director to register for self assessmentif there is no further tax liability for the year and buried within HMRC’sManuals at EM4551, there is somefurther guidance:
“There is no requirement to notify chargeability where there is no liability toIncome Tax or Capital Gains Tax or where sufficient tax has been deducted atsource to meet the net liability for the year.”
There is no exception to this for directors.
Therefore, if a director of a company has no further tax liability for a tax year AND noself assessment tax return has been issued by HMRC, then there is NOrequirement for the director to notify chargeability OR file a taxreturn with HMRC for the year in question.
If HMRC try to insist that a return is due in these circumstances, you should refer them to TMA 1970, s7 and their ownmanual at reference EM4551.
Therefore, if a director of a company has no further tax liability for a tax year AND no self assessment tax return has been issued by HMRC, then there is NO requirement for the director to notify chargeability OR file a taxreturn with HMRC for the year in question.
If HMRC try to insist that a return is due in these circumstances, you should refer them to TMA 1970, s7 and their ownmanual at reference EM4551.
The relevant section in The Taxes Management Act 1970 are:
7(1) Every person who–
(a) is chargeable to income tax or capital gains tax for any year of assessment, and
(b) has not received a notice under section 8 of this Act requiring a return for that year of his
total income and chargeable gains,
shall, subject to subsection (3) below, within six months from the end of that year, give notice to an
officer of the Board that he is so chargeable.
7(2) In the case of persons who are chargeable as mentioned in subsection (1)above as the
relevant trustees of a settlement, that subsection shall have effect as if the reference to a notice
under section 8 of this Act were a reference to a notice under section 8A ofthis Act.
7(3) A person shall not be required to give notice under subsection (1) above in respect of a year
of assessment if for that year his total income consists of income from sourcesfalling within
subsections (4) to (7) below and he has no chargeable gains.
7(4) A source of income falls within this subsection in relation to a year of assessment if–
(a) all payments of, or on account of, income from it during that year, and
(b) all income from it for that year which does not consist of payments,
have or has been taken into account in the making of deductions or repayments of tax under PAYE
regulations.
+++++++++++++++++++++++
Good luck :T"A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
Ride hard or stay home :iloveyou:0
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