Part time self employmeny help please
Discussion
Thanks for any pointers in advance.
I've just been told I face a £100 fine, because I didn't inform the inland revenue within three months that I was doing some self employed stuff, its a genuine error on my part !
In Febuary this year, my employer of 20 years or so told me that they needed to reduce my work time, as they are struggling, and couldn't afford a full time electronics chap anymore.
I agreed to go part time, on half salary, and with their knowledge and agreement, I could use all tools, computers, software etc that I need to earn enough money to pay my mortgage, as long as I don't conflict with their business.
I then started woring with a friend and collegue of many years (I used to work for him before my present employer, his business took a hit and I was made redundant, but we'd stayed mates).
To get me going, he's been paying me the half of the salary I'd lost, we've agreed to do this for the first year, then split the profits (hopefully), then that can stop.
I've been putiing away 25% of everything I've been payed , and today got around to telling my tax office, as I'd been told I'd need to complete a self assessment form by September, and that how I learnt I'm already a naughty boy !
I'm only trying to earn a crust and avoid having to claim benefits !
Do any of you kind people know anything else I should be doing ?
I've just been told I face a £100 fine, because I didn't inform the inland revenue within three months that I was doing some self employed stuff, its a genuine error on my part !
In Febuary this year, my employer of 20 years or so told me that they needed to reduce my work time, as they are struggling, and couldn't afford a full time electronics chap anymore.
I agreed to go part time, on half salary, and with their knowledge and agreement, I could use all tools, computers, software etc that I need to earn enough money to pay my mortgage, as long as I don't conflict with their business.
I then started woring with a friend and collegue of many years (I used to work for him before my present employer, his business took a hit and I was made redundant, but we'd stayed mates).
To get me going, he's been paying me the half of the salary I'd lost, we've agreed to do this for the first year, then split the profits (hopefully), then that can stop.
I've been putiing away 25% of everything I've been payed , and today got around to telling my tax office, as I'd been told I'd need to complete a self assessment form by September, and that how I learnt I'm already a naughty boy !
I'm only trying to earn a crust and avoid having to claim benefits !
Do any of you kind people know anything else I should be doing ?
Edited by Nigel Worc's on Sunday 26th July 00:03
Not really but wouldnt worry about IR as they are the most useless incompetant idiots in existance. Simply register as self employed with them and when they send your tax return through next year send it back. They will quite probably "lose" it if they are due to give you a rebate but thats nothing new.
As far as I can tell you have done nothing wrong. You should declare your s/e income at the end of this tax year along with your paye income and pay any tax due by Jan 2011. Or they might adjust your paye coding to account for the tax owed.
The only thing they might be a bit sniffy about is the s/e earnings not declared for Feb to Apr this year which is last year's 'undeclared' income.
The only thing they might be a bit sniffy about is the s/e earnings not declared for Feb to Apr this year which is last year's 'undeclared' income.
The Self Assessment regulations clearly state that you muist notify HMRC within three months of commencing Self Employment. As you failed to do this, then it does look like they are correct to levy the automatic £100 "Failure to Notify" fine. In addition to this, there could be a backlog of Class 2 National Insurance due as well - although this will depend on the overall profit levels arising fro your Self Employment activities.
Essentially, you need to get yourself sorted regarding what you need to be doing in respect of your Self Assessment obligations.
The key word to remember in the Self Assessment regime is SELF.
Essentially, you need to get yourself sorted regarding what you need to be doing in respect of your Self Assessment obligations.
The key word to remember in the Self Assessment regime is SELF.
Eric Mc said:
The Self Assessment regulations clearly state that you muist notify HMRC within three months of commencing Self Employment. As you failed to do this, then it does look like they are correct to levy the automatic £100 "Failure to Notify" fine. In addition to this, there could be a backlog of Class 2 National Insurance due as well - although this will depend on the overall profit levels arising fro your Self Employment activities.
Essentially, you need to get yourself sorted regarding what you need to be doing in respect of your Self Assessment obligations.
The key word to remember in the Self Assessment regime is SELF.
Or you could be in my position of NOT being self employed but perpetually having the yearly grind of having to complete a self assessment for no reason other than quote "I am in the system". I asked if I could get "out of the system" as there is no reason for me to be in it and I have better things to spend my time on and got a letter saying no more self assessments after the 07/08 tax year. Then lo and behold 2 letters saying complete a self assesment. Phone the Inland Revenge to be told its because my circumstances have changed (they havent)oh ok you dont have to do one then. Write me another letter saying so, then another demand arrives and so the cycle continues. Essentially, you need to get yourself sorted regarding what you need to be doing in respect of your Self Assessment obligations.
The key word to remember in the Self Assessment regime is SELF.
I got a £179 backdated automatic fine for not making a payment on account (I am PAYE only for christs sake!!)which I had to pay then got a letter saying I have overpaid £179 but guess what no refund......
Remember the Inland Revenue are grossly incompetent but no one is ever held to account. But when proved wrong they'll send you a generous £20 compensation from the "public purse" so that compensates for the endless hours trying to deal with their own failures which are still ongoing.
Did you calculate your own tax position or did you leave it to them?
If they are doing it, they should issue you with a tax calculation sheet showing how they have arrived at their figures.
They should also issue you with a Statement of Account which should show the overall situation i.e. whether you owe them money or whether they owe you money.
If they are doing it, they should issue you with a tax calculation sheet showing how they have arrived at their figures.
They should also issue you with a Statement of Account which should show the overall situation i.e. whether you owe them money or whether they owe you money.
Eric Mc said:
Did you calculate your own tax position or did you leave it to them?
If they are doing it, they should issue you with a tax calculation sheet showing how they have arrived at their figures.
They should also issue you with a Statement of Account which should show the overall situation i.e. whether you owe them money or whether they owe you money.
I had my very nice mr accountant do them for me and he has told me what to expect roughly. Earned his money too as i kept calling asking stupid questions on behalf of ir who had lost my paperwork and were giving me grief.If they are doing it, they should issue you with a tax calculation sheet showing how they have arrived at their figures.
They should also issue you with a Statement of Account which should show the overall situation i.e. whether you owe them money or whether they owe you money.
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