Not Registered as Self Employed - Fines?

[ktz84]

I started selling on ebay about June last year and had approximately £10,000 of sales. I have not registered as self employed (I also work full-time) however I now wish to do this now. I have been looking around and I can see that I will get fined £100 for making a late declaration. Are there any other fines to which I could be subjected ie for not paying my Class 2 National Contributions or anything else. Obviously profits would fall into the next tax year so there can't be any Class 4 penalities can there and income tax wouldn't fall due until next year either.

At the minute I am still working my way through everything to see how viable things are and I think I have a good handle on what I have to pay and that will probably be the subject of another post to see if I am in the right ballparks.

Thanks

[pawncob]

Start here:
http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM525680.htm

You should now be smiling as you've discovered that you won't be fined.

[ktz84]

Pawncob,

Thanks alot. I am indeed very delighted. So they got rid of that 3 month rule. Great. So I actually have up until this time next year to register as my business started in the 2010-11 tax year.

Looks like I may qualify for small earnings exception on my Class 2 National Insurance as there are a few startup costs (capital expenses) which will reduce profits somewhat let alone the cost of the stock, postage, packing, etc but I've a bit of time to get this all sorted out in my head before filing any return.

[Unknown]

Hello. My bf is in a similar situation. He has been earning a small amount of money from a side business while being employed. He did not register as self employed even though he started it approx 2.5 years ago. He earns 20k in his full time job and made 500 pounds in the last two years from his side business.
He is going to register as self employed now. How much penalties/fines is he facing?