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HMRC Tax Help

Discussion in 'Business & Tax Advice' started by Cheeky92, Dec 29, 2013.

  1. Cheeky92

    Cheeky92 Junior Member

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    Hi guys, I made a website which began making small sums of money (£75 or less/month) in August 2013.
    It rapidly grew to produce more and more each month up to now (~£900/month) and I have yet to file my earnings with HMRC.

    I will not make in excess of £9440 (my personal allowance) before April and so I naively assumed that I did not need to both pay tax and also notify HMRC of my profits. I now realise that this is simply not the case and I need to register with them asap.

    Will I be getting into any trouble by registering with them now as a sole-trader and declaring my earnings? I shouldn't have to pay any tax this tax year (I assume?) and so was hoping this will all be okay, what is the best thing to do?

    Thank you for any help, I really appreciate it - have had somewhat of a headache recently!
     
  2. pokerjk

    pokerjk Senior Member

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    Your fine Cheeky.

    You only have to declare your earnings once a year and that is for the previous tax year. For the 2013-2014 tax season you wont have to declare that until after April 2014.
     
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  3. sparkyhat

    sparkyhat Newbie

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    Hi. You have register your company within three months of starting it.
     
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  4. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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  5. Cheeky92

    Cheeky92 Junior Member

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    Thank you for the really quick responses guys, much appreciated!

    Am I right in saying that I should still register immediately with HMRC but wont be in trouble for not doing so within the 3 month timescale? Once registered, when do I inform HMRC of my earnings?

    Thanks again guys :)
     
  6. cataratas

    cataratas Junior Member

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    Hi no-one has actually answered the question you asked, so I will.

    Yes, you must register within three months of commencing trading-making profit or not within or outside of the threshold matters not.

    No they won't beat you up for registering late. Just be aware of the filing deadlines once you're registered because there are fines and penalties (interest an charges) if you don't meet them.

    Also you will have to pay class 2 NI except if your earnings are really low and you can apply for an exemption certificate. After that, you will be liable for class 4 if your earnings are above £7,605.

    I'm an accountant so if you need help let me know.
     
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