Sole Trader

meatandtwoveg

Hi.

I have 15 gap years in my NI state pension provision years; hence I have 15 years, including 20/21, until I reach 2035, the grand old age of 67.

This past financial year (20/21) I have embarked on trading stocks and shares, due to my income, I will be required to submit a tax return via self assessment.

I have never submitted a tax return in my life, always been PAYE until this year.

Can I ask, is it worth my while to register as a sole trader, so go self employed. Hence then I can pay my class two stamp, circa £160 a year. If I do this every year my entitlement to full state pension will be recognised.

Can I register this late as a sole trader/self employed for tax year 20/21? Then will this allow me to pay my class 2 stamp for tax year 20/21? 

My only income is capital gains from shares bought and sold, along with any dividend income. Will I be recognised as a sole trader, self employed by carrying out these activities on a weekly basis for income? 

I claim no benefits, have no other income, and have no pension income.

I have utilised my personal tax allowance, CGT allowance and dividend income allowance for tax year 20/21, and still owe around £6000 in income tax. 

Hence my requirement to submit a tax return. 

Thanks for any help.

Dazed_and_C0nfused

You seem a bit confused.

Can I ask, is it worth my while to register as a sole trader, so go self employed

The time limit to register as self employed for 2020:21 is October 2021.  But you can register late if need be, you just risk a late notification penalty.

My only income is capital gains from shares bought and sold, along with any dividend income

What business would you be registering as a sole trader???

dividend income allowance

There is no separate allowance for dividend income.  There is a 0% tax rate for the first £2,000 of dividend income but this income is part of your adjusted net income so can actually increase your overall tax liability in certain circumstance, for example HICBC, if your adjusted bwt income exceeds £100k or occasionally if you are the recipient of Marriage Allowance.

Marcon

meatandtwoveg said:

My only income is capital gains from shares bought and sold, along with any dividend income. Will I be recognised as a sole trader, self employed by carrying out these activities on a weekly basis for income? 

Nice idea, but sadly no. You don't have any customers, and that tends to be something HMRC expect you to have if you are a trader...

Voluntary NI might be a lot simpler: https://www.gov.uk/voluntary-national-insurance-contributions