Starting self employment 2hrs week

AG47

If somebody is a full time carer, and also takes on an hour or two extra self employed work, do they have to register as self employed?

Or is it so little that they don't have to

AG47

I think you have 3 months anyway?

ACG

You have to register as self employed.

AG47

ACG wrote: »

You have to register as self employed.

Within the first three months right?


They may say as its only an hour or two every week that there is no need to make a tax return?

I will apply for a low earnings exemption

Savvy_Sue

this question is regularly done to death on the Cutting Tax board, and doesn't always end in complete agreement.

Once upon a time, HMRC said you must register as self-employed within a set time period and you could be fined if you failed to do so.

Then they said you must register at the start of your self-employment and you could be fined if you failed to do so.

Now they seem to have back-tracked, at least partly because defining 'the start of your self-employment' isn't always a simple thing.

And to add to the confusion, if you are not required to pay any tax because your total income from all taxable sources is less than your personal allowance, there's an argument which says you don't need to register at all.

However, you DO have to keep records, both for your own peace of mind and so that you can 'prove' - to HMRC, DWP or anyone else who has the right to enquire into your financial situation - that your income from all taxable sources is less than your personal allowance.

Now when you say you're a 'full-time carer', are you in receipt of Carers' Allowance? Because what you're allowed to earn in addition to that is a Very Small Amount - you'll know better than me how much that is.

And when you say you'll apply for a small earnings exemption, is that in relation to self-employed National Insurance? Because I don't think that exists any more: you used to either apply for that, or set up a DD for your NI, but now it's worked out when you submit your tax return.

Personally, I think I'd register, even if I didn't expect to have to pay any tax. It's not particularly onerous, and it would give me peace of mind to KNOW I didn't owe any tax, to KNOW I hadn't earned more than I was allowed to while claiming CA, and to KNOW that if I was ever investigated I'd be able to produce my records just like that.

marliepanda

I wouldn!!!8217;t get too worried about accurate advice on this one. The OP rarely knows if they own their own home, get housing benefit or live outside depending on which post they happen to flit into, and they rarely return to a thread...

ACG

My understanding is that there is no 3 month rule any more - but probably more for an accountant to answer.

jobbingmusician

There's actually a new rule about SE as well. You don't have to register as SE with HMRC if you earn less than £1000 a year.

https://www.gov.uk/working-for-yourself says

You'll need to register for Self Assessment if any of the following apply:

• you earned more than £1,000 from self-employment between 6 April 2017 and 5 April 2018
• you need to prove you're self-employed, for example to claim Tax-Free Childcare
• you want to make voluntary Class 2 National Insurance payments to help you qualify for benefits

You'll need to register for Self Assessment if any of the following apply:

• you earned more than £1,000 from self-employment between 6 April 2017 and 5 April 2018
• you need to prove you're self-employed, for example to claim Tax-Free Childcare
• you want to make voluntary Class 2 National Insurance payments to help you qualify for benefits

AG47

Savvy_Sue wrote: »

this question is regularly done to death on the Cutting Tax board, and doesn't always end in complete agreement.

Once upon a time, HMRC said you must register as self-employed within a set time period and you could be fined if you failed to do so.

Then they said you must register at the start of your self-employment and you could be fined if you failed to do so.

Now they seem to have back-tracked, at least partly because defining 'the start of your self-employment' isn't always a simple thing.

And to add to the confusion, if you are not required to pay any tax because your total income from all taxable sources is less than your personal allowance, there's an argument which says you don't need to register at all.

However, you DO have to keep records, both for your own peace of mind and so that you can 'prove' - to HMRC, DWP or anyone else who has the right to enquire into your financial situation - that your income from all taxable sources is less than your personal allowance.

Now when you say you're a 'full-time carer', are you in receipt of Carers' Allowance? Because what you're allowed to earn in addition to that is a Very Small Amount - you'll know better than me how much that is.

And when you say you'll apply for a small earnings exemption, is that in relation to self-employed National Insurance? Because I don't think that exists any more: you used to either apply for that, or set up a DD for your NI, but now it's worked out when you submit your tax return.

Personally, I think I'd register, even if I didn't expect to have to pay any tax. It's not particularly onerous, and it would give me peace of mind to KNOW I didn't owe any tax, to KNOW I hadn't earned more than I was allowed to while claiming CA, and to KNOW that if I was ever investigated I'd be able to produce my records just like that.

Great post Sue, thank you


Yes I’m a full time carer over 35hr week

I’m also doing a small cleaning job, about an hour per week if I do it all fast and all goes well. But they pay for the job about £40. Sounds really great £40 per hour, but there are a lot of expenses as well.

The first year my expenses will leave me with only £20 week profit, which is my allowance at the moment.

marliepanda

AG47 wrote: »

Great post Sue, thank you


Yes I!!!8217;m a full time carer over 35hr week

I!!!8217;m also doing a small cleaning job, about an hour per week if I do it all fast and all goes well. But they pay for the job about £40. Sounds really great £40 per hour, but there are a lot of expenses as well.

The first year my expenses will leave me with only £20 week profit, which is my allowance at the moment.

No cleaning job of one hour a week has £20 allowable expenses a week. That!!!8217;s simply not a thing.

AG47

Savvy_Sue wrote: »

this question is regularly done to death on the Cutting Tax board, and doesn't always end in complete agreement.

Once upon a time, HMRC said you must register as self-employed within a set time period and you could be fined if you failed to do so.

Then they said you must register at the start of your self-employment and you could be fined if you failed to do so.

Now they seem to have back-tracked, at least partly because defining 'the start of your self-employment' isn't always a simple thing.

And to add to the confusion, if you are not required to pay any tax because your total income from all taxable sources is less than your personal allowance, there's an argument which says you don't need to register at all.

However, you DO have to keep records, both for your own peace of mind and so that you can 'prove' - to HMRC, DWP or anyone else who has the right to enquire into your financial situation - that your income from all taxable sources is less than your personal allowance.

Now when you say you're a 'full-time carer', are you in receipt of Carers' Allowance? Because what you're allowed to earn in addition to that is a Very Small Amount - you'll know better than me how much that is.

And when you say you'll apply for a small earnings exemption, is that in relation to self-employed National Insurance? Because I don't think that exists any more: you used to either apply for that, or set up a DD for your NI, but now it's worked out when you submit your tax return.

Personally, I think I'd register, even if I didn't expect to have to pay any tax. It's not particularly onerous, and it would give me peace of mind to KNOW I didn't owe any tax, to KNOW I hadn't earned more than I was allowed to while claiming CA, and to KNOW that if I was ever investigated I'd be able to produce my records just like that.

Thanks so much Sue