Self Employed Advice Please

[Vicky1110]

So, I currently am just doing some freelance work and the whole self employed registering thing is really confusing me. I've probably done something wrong and am going to get a huge fine. I started in Feb 2023, before the end of the tax year I only made like £50 as I was just figuring it out and seeing what's what. Since the new tax year I've made like £200 so not much but money is money.

I haven't registered as self employed basically because I don't really know how to? Or if I need to? Do I need to report the £50 I made between Feb 2023 and 6 April 2023?

When clicking to register as SE it just takes me to the full out a self assessment, is that all it is? Is there no actual click her to say you're self employed?

I don't know what I'm doing with it all if you haven't guessed. Any help would be appreciated x

If you are self-employed you will need to file an SA return initially, even if you are not earning enough to pay tax. Keep records of everything, and the form will be v easy to complete.

What are you doing?

@Hbh17 do I even do one for 2022-2023 where I've only earned about £50? Is there anywhere that I have to even state that I'm SE?

@sillyonehetpes just some tasks like on App*n and some chat moderation. So some months it will be nothing and others a couple hundred.

Is your 'gross income' or 'profit' under £50?
Google 'trading allowance' (£1,000), it sounds like you wouldn't need to complete a tax return - but check the details against your situation.

@Newtt for Feb 23 - 6 April 23, my gross is approx £50. It is only a little side work to get some extra cash, but I do expect to be making a couple hundred most months this tax year.

App*n?

You register with the government (HMRC) to do a self assessment tax form (SA100) they will send you details along with something called a UTR so you can register online to file your own tax return.

The period from 6th April 2022 to 5th April 2023 doesn't have to be filed until either October 2023 if done by form or if done online January 2024.

So no need to worry. Just make sure if you have got tax to pay you keep it to one side .

You don't need to register for S/e for the 22/23 tax year as your gross s/e income was under £1,000, so no need for SA return for 22/23.

You will need to register for S/a for the new tax year 23/24, and I'd suggest you enter the date of registration as being 6/4/23, on the grounds that you expect your s/e gross income to be over £1,000 for the 23/24 tax year.

@ameliaandme Thank you for that, do I still need to register for it even though I've earned so little in the last tax year?

You don't need to pay tax until you earn more than £1000 in a year. If you anticipate you will, then you should register as self employed- https://www.gov.uk/check-if-you-need-tax-return

Make sure for anything you earn, you're putting aside 20% for tax (I put aside 30% to cover tax and NI).

If you register with all the dates and details HMRC will let you know if you have to fill in a tax return for 2022-2023.

@Kazzyhoward Thank you, I just wasn't sure about it because of the amounts. Some people say you have to regardless of the earnings amount. Do I register for SA for 23/24 now?

No, you don't need to register this early. You have until Sept/Oct 24 to register and your first tax return (year end 5/4/24) will be due for submission by end of January 2025. No harm at all in holding back to see how much you earn and register only when you know you're breached the registration thresholds. No benefit at all in registering earlier than you have to.

@Kazzyhoward that is a weight off, I was worried I'd be fined otter something! So I can just wait until I've earned £1000 (I think it'll be about August/September time when I reach that figure) and then think about registering for SA? I assume in future years, they'll notify me of when I need to compete it?

Do I need to notify HMRC that I am SE in the mean time?

Registering/notifying is the same thing, you "notify" them by registering, there's no other method.

@Kazzyhoward ahh I did wonder, everything says you need to register as SE but when you click to do that it says register for SA and I got so confused.