Informing tax office

StraightAmes

I have been running a business for several years with the casual help of my husband.  He gave up work about a year ago to help me a little more and I would like to formalise this by informing the Tax man!  What is the earliest date we can tell them without incurring their wrath?  I would really like to say he started a year ago but is it too late now?  Thanks for your input

Dazed_and_C0nfused

StraightAmes said:

I have been running a business for several years with the casual help of my husband.  He gave up work about a year ago to help me a little more and I would like to formalise this by informing the Tax man!  What is the earliest date we can tell them without incurring their wrath?  I would really like to say he started a year ago but is it too late now?  Thanks for your input

Inform them of what 🤔.

Do you mean he started work for you as an employee about a year ago?

StraightAmes

As a partner in the business and therefore declaring himself self-employed

Dazed_and_C0nfused

Strictly he should have done that by 5 October 2022.

But if he registers now and pays any tax due for 2021:22 by 31 January 2023 he's unlikely to have any issues.

Assuming one hasn't been issued for some other reason he will get 3 months to complete his 2021:22 Self Assessment return once he receives the notice to file one.  So if a return is issued on say 10 December 2022 the deadline for filing it will be 10 March 2023, not 31 January 2023.

But any tax owed must still be paid by 31 January or he will be charged interest and there is more chance of a penalty.

Same for filing of the partnership return.  

Have you sorted software for the partnership return?

https://www.gov.uk/set-up-business-partnership/register-partnership-with-hmrc

StraightAmes

That is great information - thank you so much for taking the time to do that.  I guess even a £100 fine is worth risking as it we will be able to use his tax code allowance as he is no longer employed
I have not looked at the partnership side of things and will read up on the link you supplied.  Once again thanks for that!

Dazed_and_C0nfused

Don't forget he needs to declare all his taxable income for 2021:22 on his tax return, not just his share of the partnership profits.

He gave up work about a year ago

StraightAmes

Thanks - we have a little work to do to get it right!!!  I did not even realise that it was necessary to register the partnership.  I think I will bite the bullet and get started tomorrow morning!

DullGreyGuy

StraightAmes said:

Thanks - we have a little work to do to get it right!!!  I did not even realise that it was necessary to register the partnership.  I think I will bite the bullet and get started tomorrow morning!

Not only register it but it has its own tax return to be done.

The other option is that he is just your employee and the salary you pay him is one of your business expenses however the penalties for having not registered for PAYE etc are almost certainly more than regards the partnership.

martindow

Is your husband receiving a pension?  If so, he could well have used most or all of his tax free allowance, so his SE income would be partially or totally liable for tax.