Starting self employment 2hrs week

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.

I have confirmed this is all correct

If it’s under £1000 per year you don’t have to declare

It’s less work for them