New Sole Trader tax

LaurenTsV

Hello,

I am unemployed otherwise but started doing some e-commerce to try it out since late August 2023. Nothing massive, just experience right now. As I understand it I don't have to register as a sole trader till October of 2024. Is this accurate? If so, how does this work with April tax year? Would I just register any amount I made in profit for 2023-2024 whenever I register pre October 2024(not enough to be taxable income but still requires declaration I presume?)

Thanks for all advice

Dazed_and_C0nfused

LaurenTsV said:

Hello,

I am unemployed otherwise but started doing some e-commerce to try it out since late August 2023. Nothing massive, just experience right now. As I understand it I don't have to register as a sole trader till October of 2024. Is this accurate? If so, how does this work with April tax year? Would I just register any amount I made in profit for 2023-2024 whenever I register pre October 2024(not enough to be taxable income but still requires declaration I presume?)

Thanks for all advice

You only need to register if your turnover reaches £1,000 (until then the Trading Allowance means you would have no profit).

But assuming you will reach that amount then yes, October is the deadline but there is no pint in leaving it to the last minute.

You don't tell HMRC anything about your business income when you register.  You include that information on your tax return when you come to complete that.

The return for 2023-24 would normally have to be filed by 31 January 2025.  That assumes you have registered by October 2024 at the very latest and HMRC have issued a notice to file a return.

BoGoF

Don't wait till October, do it now. Leaving it till October only gives you to 31/1/25 to complete your return. Dojng it now means the return will be issues in April giving you more time to figure it out.