Not registered Self employed since May 2010

by **clares** on Fri Jan 20, 2012 2:19 pm

Hi, i hope someone can help.
I am employed PAYE part time (£14,287), and also rent out a property (£12,228 profit 2010/11). I have been registered for self assessment since renting my flat 4 years ago. The problem starts when i started covering some self employed work of a friend in May 2010 which was meant to be short term. I have actually continued and now earn in addition to my PAYE between £600-1000 per month. In the tax year 2010/11 I received £11,145 through self employment. I had not realised that i needed to register as self employed, i stupidly thought self assessment was the same thing. I am now really worried as to what penalties I will face. Can any one offer advice? I have stuck my head in the sand for the past 3 months. I have told one friend and she told me to lie and just say i have started work now. I do not want to do this as i would live in even more fear than now. Any advice welcome. thanks in advance for your time.

by **Peter D** on Fri Jan 20, 2012 5:54 pm

Under which section in your SATR have you been detailing the other income. Regards Peter

by **pawncob** on Fri Jan 20, 2012 7:07 pm

Late notification of S/E and class 2 registration needn't be too expensive. Previous fines regime is now more gentle. See:
http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM525680.htm

As you started in May 2010, your first year ends in May 2011, which should be included on your 2012 tax return.
Check the basis period you can choose at HS222.pdf

by **clares** on Sat Jan 21, 2012 4:05 pm

Thankyou for the replies.
i have read the class 2NIC penalties and hopefully i am not too late to register and will not face a penalty on this.
With regards to the self employment tax I am still unclear. My other part time employment is with the NHS and i am taxed in my payslip automatically which I just enter the P46 details onto the self assessment form.
I intend to call the tax office Monday and would just like to know where I stand now in relation to the income tax. As with my flat rental profit some of this has been paid in june 2011. Where will I stand that having not informed them about my self employment (since May 2010) I have also not paid any of that tax due yet. will i have to pay penalties/interest.

grateful for anymore information before i call them.

by **King_Maker** on Sun Jan 22, 2012 1:56 pm

It might be useful to work out the optimum accounting date - 31 May 2011, 5 April 2011, 31 March 2011 may not be the best options. It could reduce your Income Tax & NI liabilities.

As mentioned above, read HMRC Help Sheet HS222.