Eek - tax self assessment question

[FreezerBird]

Firstly, I'm an idiot. I'll take that as read!

In October 2017 I did some admin work on a specific project, on a self employed basis. Was a tiny job and I earned about £1200.

That was my only income in that tax year.

At about the same time last year the same organisation took me on for several larger projects.

I've just been looking over the rules for self assessment as I would expect to need to file a return this time next year and it seems that because I earned more than £1000 in 2017-2018 I should be filing a return now for that income. I'm astounded that that threshold is so low given my tax allowance is £11850.

It's no problem to file a return as it's very simple, but it seems I should have registered to do this last October!

Am I misunderstanding this? It seems odd to me to file a return (presumably making work for the HMRC) which won't produce any tax payment.

If you had no income other than the tiddly self employment then do not worry too much

if that self employment was as well as PAYE then its a different matter

No, it wasn't in addition to PAYE.

I'm generally a very follow-the-rules person so I'm a bit panicked.

If that was your only income that tax year, it would be well below the personal allowance, (11800 last tax year I believe), so no tax payable.

I would phone HMRC to clarify and avoid late fees - they've always been very helpful for me. Then get registered now so you're ready to go next year.

If that was your only income, then you can claim trading allowance of £1k and not file a return, though you should keep records.

www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income see this link for details

Oops, sorry. Ihnore me...Its late and im tired 😴 you said £1200 so you should declare, sorry!

Link still worth a read for what you need to do.

It struck me in the middle of the night that I do have a UTR number - dh was self employed and for a while we had joint income from a rental property so I used to file a return then. I wonder if I can just go ahead and file online with that UTR although I haven't filed for a few years. (Assuming that the primary reason to register is to get a UTR?)

Will probably give them a call - just annoyed with myself!

Give them a call...I’ve been in and out of self assessment and they’ve always been helpful.

If it'll help lessen your shock you have e to do a return. It's not necessarily about paying tax.

With the return you are declaring your income for whatever period it maybe. (Same with if you sell an asset, even if it's exempt from CGT, the disposal needs to be declared.)

To simplify it, it's to do with statistics: helps with understanding the economy and budgeting.

Thanks all.

I've called them, s for the benefit of anyone who makes the same mistake:

I can register now (late) to file a return for 2017-18; because the income not enough to be taxable no penalty fees will apply.

Phew, and then I'm all set up for next time.