started in self-employment then changed mind, advice needed

[brrapp]

Hi all, my daughter is looking for some advice.
She was in full time employment then left voluntarily a month ago. She had a few contacts so decided to set herself up as a self employed (sole trader) contractor. She did two days work for one business then three weeks for another. The one who gave her the three weeks work were impressed with her and wanted her to stay permanently so offered her a full time job with good conditions that she would be foolish to refuse. She starts next Monday in the full time position.
She hasn't even informed HMRC that she'd started as a sole trader or set up a business account yet but has had one payment from each client.
I'm not sure if she can register as a sole trader then inform them immediately that she's stopping. Would it be simpler (and legal)for her just to hand the money back to the clients and act as if she had never been self employed? I'd imagine that given the sums involved it would be worth while sacrificing them rather than going to the expense and trouble of preparing accounts for 3 weeks work, or does anyone have any alternative suggestions?

[davepoth]

You don't "register" as a sole trader as such; all you need to do is fill in a tax return. It sounds like things will be relatively simple for her - I did about the same amount of self-employed work one year while still employed, and it only took a couple of hours to sort out. If her affairs are complicated it might take a bit longer but it really isn't too tricky.

[brrapp]

Thanks, should she just hand over her p45 from her last employer to the new employer as if she hadn't done the intervening work then fill in a self assesment form for the self-employed work seperately?

[malks222]

your daughter does/ did need to register as 'self employed/ sole trader' as she would need to make NI payments to HMRC throughout the year but would then sort out her tax at self assessment time.

for the length of time she has been 'self employed' this would be a bit of a hassle, she could do a self assessment tax return and declare this income, or she could just move on with her permanent role with her old p45 and pretend like this never happened............

[All that jazz]

malks222 said:

or she could just move on with her permanent role with her old p45 and pretend like this never happened............

This ^. Pocket the cash, forget about it and move on. HMRC have bigger fish to fry.

[condor]

malks222 said:

your daughter does/ did need to register as 'self employed/ sole trader' as she would need to make NI payments to HMRC throughout the year but would then sort out her tax at self assessment time.

for the length of time she has been 'self employed' this would be a bit of a hassle, she could do a self assessment tax return and declare this income, or she could just move on with her permanent role with her old p45 and pretend like this never happened............

The making NI payments isn't strictly true as if self employed income for the year is less than £5965 ( might be £5985 can't remember the exact number) then you don't have to pay National Insurance. That is for a years self employment though. Could well be setup costs for the small amount of self employment meant there wasn't a profit as it was so short lived.
I think she should fill in a self assessment tax return and declare the small amount of monies earned as self employed income minus expenses as the tax return also asks for paid employment details.