self employed and not yet declared it

[badnews]

I am self -employed for the first time. I believe you should declare this in the first 3 months of becoming self employed. I have been meaning to doing this for nearly two years and still not declared. I keep meaning too, but time keeps passing by and I still havent got round to it. I want to declare but I am too scared now because I know I will get into a lot of trouble and I am scared I will be sent to prison. Up untill becoming self employed in Oct 2006 I have always been on salary and I have always paid my tax and insurance. I am normally a very law abiding person.

[badnews]

yes i know, what will happen? Somebody said i should declare myself now and not mention the past and if they ask what i have been doing say i have been travelling.

[jedimistress]

Yes Badnews.
Register as of about 2 months ago. 't even need to talk to anyone, just fill in a form. You donYou dont have to explain what you have been doing unless asked. So if asked, then perhaps say you were travelling.

[jedimistress]

Oh and you wont go to prison.

[terambulan]

Self-employed usually get the first years 'grace' (let off tax). Register with the Tax Office asap and u will find them quite understanding.

You can always say 'you were testing self-employment'. DONT leave it any longer as the next Self Employed Tax Returns are due in by January 09. It will be worse for you if they track you down!

[jedimistress]

One last thing, if you receive an official "enquiry" from compliance section about previous years, then it's best NOT to say you were travelling, as it usually means they have something on you.

Even then you wont go to prison, but will have to pay any tax they deem that you owe. (With penalties and interest).

[Twenty20]

>>>Self-employed usually get the first years 'grace' (let off tax)

Do they? Perhaps you pay tax in arrears on your earnings but I can't see HMRC saying 'don't worry, we wont collect any taxes this year'. Where did you get this piece of info?

[ct75]

What exactly have you been doing workwise while self employed, how much have you earned and have you kept good records of income and expenditure, you can off-set a lot of expenses against earnings therefore saving tax.

[bednobs]

mr bednobs was in this position once - he was a taxi driver and it paid cash in hand. I cant remember whether they contacted him or he contacted them, but he then provided "accounts" for the previous 3 years , gt a bill for tax an national insurance, paid it and all was ok

[Ethel]

No point referring to the good old days now the rules have changed, bednobs

"Make sure you register as self-employed with HM Revenue & Customs (HMRC) as soon as you start up in business on your own. If you fail to do this within the first three full months of becoming self-employed, you may have to pay a penalty of �100."

The tax man will want to know what you have been living on for the past three years - no benefits and no income.

[badnews]

Thanks for the advice, before I became self employed I did travel to Africa to do some volunteering work for 6mths, when I came home I stayed with my sister for about 9 months, I just gave my sister board money. I have only just moved out into my own place so I have just started paying my own rent, council tax etc. I only have records of any bills/expenditure since April.

[Tom Braider]

I'm horrified by the foolish, irresponsible, ignorant and downright criminal advice given to badnews here. Thankfully, he's posted his question under at least 2 other headings and been given more sensible advice.

First year's grace for the self-employed? Don't make me laugh! Tell the taxman you've been travelling? Try that one and see how far you get! the tax don't care? We'd better stop paying their salaries, then.

I fail to see why anybody should be told that he needn't pay his taxes. How do you feel about people who don't pay their way in other contexts?

[luxury]

Hi Badnews,

Get an accountant ASAP.

Have you been doing your self assessment as self employed? and as a self employed person have you been paying Class 2 stamp?

The HMRC must know you're self employed from those 2 things.

Good Luck!!!!

Don't leave this

[badnews]

Hi thanks everyone for the good advice, I havent done anything so far! Of course I am prepared to pay all monies that I owe, I am just worried that it will be a fortune and they will want the money straight away as I have been earning �650 per week! Least I know I wont be sent to prison.

[Tom Braider]

�650 a week? That's roughly what I earn - and I assure you I don't get to keep all of it! You knew you had to pay tax on that - have you "not gotten around" to paying any other debts? It's lucky for you that access to public services doesn't depend on confirmation from HMRC that you've paid your due taxes. Anyway, make sure you phone the revenue TODAY - they're open Sundays, though not Bank Holidays. Don't wait till Tuesday. The number is 0845 915 4515

[badnews]

Ive only had to pay bills, rent etc since April, before that I was living with my sister and travelling abroad for a month at a time every 3 months. I spend half of the year in France because that is where my husband lives.

[chino-cube]

what is the French for bullsh1t?

[chino-cube]

i deliver yellow books for �67.79 a week