Can i still be self employed with zero takings?

Markp1984

Hi, i am hoping to set up a business soon, it'll take some time to establish, at least a year, if not 2, in that time I expect it to turn over £0! It'll (unfortunately) have all the time/money expenses of a business though, and because of that and the fact I'm aiming to make money, can I still register as self employed? (eager to so that I can make my class 2 Ni contributions still)
Thank you.

fatbelly

Yes you can.

What will you be doing for income?

Bookworm225

yes you can register as self employed and indeed you should, not just to get Class 2 NI, but also because you should be registering your loss (each year) so you can carry it forward to offset against when you do make a (taxable) profit in the future

Be careful however not to claim the trading allowance as that cannot be used to create a loss - see link for comparable scenarios

Also, if in the meantime you have other income streams, then potentially you could choose to offset the loss against that other taxable income, see link for details

Trading losses | Low Incomes Tax Reform Group 
(bear in mind default method for accounts for SE is now the cash basis)

Markp1984

Thank you for the excellent replies. Until (hopefully) making some money I've just been saving, nothing exciting, no lottery wins!
Much appreciated 

SVaz

Of course.  I went self employed a few months before making any money and all my setting up expenses ( Van/ tools/ insurance etc)  gave me a nice tax rebate of £3k. 

MeteredOut

Make sure you can evidence being in business in the (unlikely) event that HMRC come asking for proof that you're due the NI credits.

Mistral001

I was in business for about 6 months before I got my first clients.  I would keep a paper trail of all your expenses.   I actually kept a diary, entering in what I work I did each day in connection with the business, miles I travelled etc.