Notification of trading. Uh oh.

[jon-]

Right, I've just realised I've been invoicing for (just) over 3 months and not notified the government I'm doing so. You're allowed to make the notification within 3 months of starting to trade, so do I:

a) Lie, and forget about my first invoice (£200)

or

b) Tell them the real date of first invoice and hope they don't fine me.

FWIW i'll be registering as a sole trader and I'm simply invoicing some advertising deals on www.tyrereviews.co.uk, I doubt I'll even have to pay class 3 NI this fiscal year.

[trackcar]

Someone with far more knowledge than me will be along soon, but my advice would be tell the truth!

[jon-]

trackcar said:

Someone with far more knowledge than me will be along soon, but my advice would be tell the truth!

You always tell the truth, it's just how much truth you tell.

For example the site has had adsense on for over a year, which pays a few quid into my account month on month, but it's not invoiced and how many blogs etc run with adsense and not say a word..?

[smartie]

late filing doesn't appear to be an automatic penalty - write an apologetic letter when you register and you may well hear nothing further..........

[Eric Mc]

I haven't come across anyone yet who has been filed for notifying late. The fine exists, but it is rarely levied. I would get on and notify them (you can do this by phone for speediness sake).

[leginigel]

They want you on their books more than they want the fine.Get a good accountant,good not cheap!

[jon-]

Thanks for all the advice guys. I'll file electronically today and see what happens.

leginigel said:

They want you on their books more than they want the fine.Get a good accountant,good not cheap!

Given the turn over will probably mean I'm exempt from class 3 NI (the threshold is ~4000) before I even consider costs I'm just doing this to be legal. An accountant would cost more than I take, it's just a hobby after all!

[Zain09]

You can do them yourself and if you need help just hire a bookkeeper there will be some good cheap ones about.

[Eric Mc]

jon- said:

Thanks for all the advice guys. I'll file electronically today and see what happens.

leginigel said:

They want you on their books more than they want the fine.Get a good accountant,good not cheap!

Given the turn over will probably mean I'm exempt from class 3 NI (the threshold is ~4000) before I even consider costs I'm just doing this to be legal. An accountant would cost more than I take, it's just a hobby after all!

Self Employed individuals are liable to Class 2 and Class 4 NI - not Class 3.
Whether you are exempt or not is based, not on turnover (sales/fees) but on taxable net profit. To arrive at that figure, you need to know what expenses and Capital Allowances can be offset against your gross trading income.

For 2008/09, the annual Small Earning Exception limit is £4,825.

[jon-]

Eric Mc said:

jon- said:

Thanks for all the advice guys. I'll file electronically today and see what happens.

leginigel said:

They want you on their books more than they want the fine.Get a good accountant,good not cheap!

Given the turn over will probably mean I'm exempt from class 3 NI (the threshold is ~4000) before I even consider costs I'm just doing this to be legal. An accountant would cost more than I take, it's just a hobby after all!

Self Employed individuals are liable to Class 2 and Class 4 NI - not Class 3.
Whether you are exempt or not is based, not on turnover (sales/fees) but on taxable net profit. To arrive at that figure, you need to know what expenses and Capital Allowances can be offset against your gross trading income.

For 2008/09, the annual Small Earning Exception limit is £4,825.

Thanks Eric, I knew what I meant regarding the NI

I found a web form for registering as trading online a few weeks ago but i can't for the life of me find it today, I'm starting to wonder if i was dreaming. Anyone know of it's location?

[jon-]

For anyone else's reference, I found it

http://www.hmrc.gov.uk/selfemployed/register-selfe...

The HMRC site is fun

[Brown and Boris]

Eric Mc said:

I haven't come across anyone yet who has been filed for notifying late. The fine exists, but it is rarely levied. I would get on and notify them (you can do this by phone for speediness sake).

All of my people who notifieed late got £100 fine. Mind you they all left it to the end of the tax year if some kind of 'group-think'.

[Eric Mc]

Brown and Boris said:

Eric Mc said:

I haven't come across anyone yet who has been filed for notifying late. The fine exists, but it is rarely levied. I would get on and notify them (you can do this by phone for speediness sake).

All of my people who notifieed late got £100 fine. Mind you they all left it to the end of the tax year if some kind of 'group-think'.

They're probably aliens .