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Self employment with 0 earnings?

6 replies

zzzexhaustedzzz · 29/07/2023 10:50

Hi, simple question, I have earned a bit through SE for the last few years but this year I am under the £1000 threshold. I also claim some tax credits. Is there any advantage to continuing to be registered this year and declaring 0? I will probably continue to earn through SE next year and probably be over the threshold again.

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areyouhavinglaugh · 29/07/2023 10:52

Yes just carry on doing self assessment, it doesn't matter if it 0. You won't get tax credits otherwise.

Fourmagpies · 29/07/2023 13:25

Yes, still do it. It'll take you longer to get through to HMRC to get them to take you off self-assessment than to submit the return. And as PP said, you'll need it for tax credits. And also pay the class 2 NI voluntarily if you're not paying NI elsewhere and don't get credits: https://www.gov.uk/national-insurance-credits/eligibility

National Insurance credits

Who can get National Insurance credits and how to apply or when to pay voluntary National Insurance contributions.

https://www.gov.uk/national-insurance-credits/eligibility

zzzexhaustedzzz · 29/07/2023 13:28

Thankyou for that, I will continue as normal.

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zzzexhaustedzzz · 31/07/2023 15:56

Ugh! I can’t get my head round it this year!
So previously I used the trading allowance and had some profit that I declared and paid a small amount of tax on.
This year I only made 400 pounds and want to use the trading allowance again. I entered the 400 in the net profit box. Is that wrong? Should it be 0? I thought I’d done it all right but now it’s saying I owe them 180ish pounds? Confused. Doesn’t say what for.
The helpline isn’t available til September!

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Fourmagpies · 31/07/2023 16:11

Do you have other income? You shouldn't have any tax on £400, if that's your only income?
Is £400 your profit or income? You put the amount of your sales in income, and then the same amount (assuming below £1k) in the trading allowance box. Make sure the profit is zero.

zzzexhaustedzzz · 31/07/2023 17:01

Thanks, 4Magpies, I do have other income and am over the tax threshold with that. Maybe I haven’t paid enough, all told. Will check boxes again.

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