Self-employed undeclared income

Penguin666

Hi all

I’m in a pickle. I was self employed last year and was supposed to get a bonus for some work I did, but a deal never went through and I didn’t end up getting paid.

Anyway, I’ve just been paid that bonus as it went through, so do I need to declare £1000 for last tax year or this tax year? I know the business paying me would have declared it on their reports as for last year so would they have told HMRC that the payment was paid to me directly or just a contractor? I don’t need to pay tax on it either way as under £11500 but I’m guessing I owe for national insurance?

As you can see, naive here as not been self employed before!

Thanks

Cook_County

Presumably you invoiced for this. Generally speaking, you'd prepare your accounts using an accrual method for your business accounting period. If you have low income you might elect to use the simplified cash accounting method.

laticsforlife

I'm guessing that last comment went right over your head.

I'll surmise you didn't declare it as accrued income.

So it'd be declared this year, but as it's only £1,000, then it probably doesn't matter in the grand scheme of things.

Are you going to earn this year? Have you been doing tax returns previously? Have you already told HMRC you have ceased?