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Can someone who knows about tax/ self employment explain to me what I need to do?

6 replies

Sparklydiplodocus · 10/12/2021 13:53

Since Jan I’ve been getting paid as a part time contractor. Before the tax cut off at the end of March I’d earn around £500. Since then I’ve earned around £1100.

Am I right in thinking I need to register my self as self employed now? Is there anything else I need to do?

OP posts:
JoMumsnet · 10/12/2021 16:24

Hi @Sparklydiplodocus,

We're just bumping this thread for you in case anyone's around to help.

ivykaty44 · 10/12/2021 16:27

if you earned up until march 2021 then yes you should self register by October 2021

but read up on the hmrc site what you need to do as 500£ maybe under a limit to pay or register??

Sparklydiplodocus · 10/12/2021 17:00

Yeah that’s what I’m confused by!

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PurpleMoonbows · 10/12/2021 17:52

I'm assuming you're in the UK. Up until March your self-employed earnings were under the £1000 trade allowance so no tax to pay ( unless you have other self-employed earnings or the contracting work was for a connected person such as your employer.) You will need to register for the current year. It's easy to do online - Google register as self employed. The deadline is 31st October next year but no harm in doing it earlier. HMRC will send you a tax return in April to complete.

Sparklydiplodocus · 10/12/2021 18:06

@PurpleMoonbows thank you so much!!

OP posts:
tectonicplates · 10/12/2021 18:34

The threshold is £1,000 per tax year, so April to April. If you earn over £1,000 in a tax year, register to fill it in online, as it's much easier than doing it on paper. If you do it online, the first bit is a few tick boxes about what your activities have been, e.g. are you employed, self employed, own shares, owe capital gains tax from something etc, and then they'll only show you the pages you actually need to fill in. It's a lot less daunting doing it online, as you won't be looking through a huge booklet and thinking should I fill in this page or that page etc.

As long as you have a "simple" situation (i.e. that you get paid once a month or per job, have a basic spreadsheet, and maybe have a couple of expenses, rather than having a big complicated thing with lots of stuff going on), then filling in a tax return is much easier than people realise. There's loads of help online if you google stuff, and HMRC have lots of helpful pages and videos.

The deadline will be 31st January 2023 (it's only 31st October if you do it on paper, I think). But always do it earlier than this, mainly because if you need to phone HMRC to ask them anything, if you phone during January you'll have to sit in long phone queues with everyone else who's left it until the last minute. Do it earlier and it's much easier to get help and advice more quickly.

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