Not Registered As Self Employed

bunnyhopper

I've been employed since May 2016 as a freelance editor and paid approximately £300 a month, I've known I should register as self employed but haven't because of my phobia of dealing with HMRC. I just want to know if I register now am I going to be paying lots of late fines, and how much approximately will I owe? I'm in debt (in my overdraft) so these amounts are of importance to me and part of the reason I have kept putting off registering, as I am frightened that the amounts are going to be more than I can afford to pay. I also don't understand whether I should have been keeping a record of expenses etc. And when the tax year starts and stops. Please be kind to me as I realise this makes me sound completely incompetent, but it is really just due to my anxiety around money/debt. Thank you!

glider3560

Tax returns for the period 6th April 2016 to 5th April 2017 are due to be submitted by end of October 2017 on paper or end of January 2018 online.

bunnyhopper wrote: »

how much approximately will I owe?

It depends on a lot of factors, including how much other income you have. Assuming your self employment is your only income and you earnt absolutely nothing else in the year, then your earnings are fully within your personal tax free allowance of £11,500. Without more information, no-one can give you an accurate figure.

bunnyhopper wrote: »

I also don't understand whether I should have been keeping a record of expenses etc

Yes, how else will HMRC know how much you earn?

bunnyhopper wrote: »

And when the tax year starts and stops.

6th April to 5th April, inclusive.

The longer you leave it, the more you'll owe. Fortunately, you can register as self employed anytime before October in the second tax year (i.e. October 2017 in your case). So provided you do it now, file your tax return on time and pay tax due on time, you won't be fined.

Dazed_and_confused

And in this instance now really does mean now, not in a week or 6!

pavane

The sooner you contact HMRC the better. Don't wait, do it tomorrow.

TheCyclingProgrammer

The deadline for registering after your first year of self-employment for the 16/17 tax year is approaching soon (5 October) so try and register ASAP though I believe there's no fine for late registration so long as you get your tax return filed by the Jan 31 deadline.