Never registered for self assessment

[islandhoppers]

Someone of my acquaintance has done some freelance work for about 2 years and 8 months, they earn around £2,000 a year, they’ve never registered for self assessment. It’s come to light that they should have done and seeing some of the penalties for late submissions, has really worried them. What is the best way to proceed and the likely penalties incurred? There was no malice or tax avoidance intended, they didn’t think they would have to do a self-assessment, because of the small amount they earned.

[jerome.lane]

If they do not have other income over the personal allowance or the expenses exceed the turnover (which they may well do), then there is no tax to worry about. If there is a tax liability and they want to make a disclosure, it is possible that HMRC will not apply penalties. In the grand scheme of things this is unlikely to ever become an issue although your acquaintance may want to resolve the issue by contacting a tax advisor or accountant.