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

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