What should I do if I haven’t told HMRC I started self employment a few years ago ?

What should I do if I haven’t told HMRC I started self employment a few years ago ?

Don’t panic, all is not lost!

If it’s only a small amount of income then you could fall within what is known as the trading allowance.

This allowance was introduced from the 6 April 2017 (tax year 2017/18), the allowance is £1,000 of gross income, that’s income before any expenses. The exemption is automatic and if your self employed income is £1,000 or less you do not need to tell HMRC.

If you income was higher than this, then there are ways to help you. We have experience in using what is known as Voluntary Disclosure with HMRC, we have used this for cases on non disclosure of self employed income going back 6 years or more. You will still have to pay any taxes due and interest on late payment but the penalty involved is submitted by us on your behalf so is often 10% or less and HMRC tend to accept the figures submitted without further enquiry.

If you were found out by HMRC and had an HMRC enquiry then this would lead to much higher penalties, up to 100% of the taxes due plus the time and stress of dealing with all HMRC questions and proving your figures.

If you need advice or help then contact me for more information here

HMRC Voluntary Disclosure, late notification to HMRC, tax fines, tax penalties

Share This Post

Disclaimer

All content and information on this website is for information purposes only, and it does not constitute accounting advice and does not establish any kind of accounting-client relationship by your use of this website. An accounting-client relationship with you is only formed after we have expressly entered into a written agreement with you that you have signed including our fee structure and other terms to represent you in a specific matter. Although we strive to provide accurate general information, the information presented here is not a substitute for any kind of professional advice, and you should not rely solely on this information. Always consult a professional in the area for your particular needs and circumstances prior to making any professional, legal, accounting and financial or tax related decisions.

Red Tulips Chartered Accountants do not take any responsibility for links used within this website for external internet sites. We will not accept any responsibility for any information contained on those external sites or viruses arising from any link to a third party website. 

Related Posts

Why choose a Chartered Accountant ?

5 Reasons to use a Chartered Accountant Before choosing your accountant Unless a member of the ICAEW ( Institute of Chartered Accountants) or qualified with another professional body, anyone can call themselves an accountant, even if they have no professional…
READ MORE
keyboard_arrow_up