Anyone know…if I started my business in Jan 23 but did not make the magic £1000 until after april 2023, do i register for self assessment next year? If I register now it will self assess 2022 to 2023. Have I got that right. Does anyone know?
Hi Jayne, you should register straight away and submit a self assessment for 2022/23 even if you earned below the threshold. For self assessment you pay tax in advance so this years tax (23/24) will be based on a calculation of your earings from last year (you will only need to pay if you would have earned above the threshold or they ‘estimate’ you will, this incudes earnings for any paid employment as well so if you are or hav been working you need to count that as well as part of your earnings for 22/23. I pay in January and July every year calculated on the previous years earning, then when I submit my self assessment (usually I submit around September/October) if there is more due than I have already paid I have to pay the difference and they use that to calculate what I have to pay next January and July. (e.g. if I paid £500 in January 23 and £500 in July 23, and my tax due for this year was £1200 I would need to pay the extra £200 and then in January and July 24 I would pay £600)
Something that can catch people out in their first year of self assessment is if you wait until the end of the year to submit your first return and you owe tax they will want payment for all of it straight away (by 31st January usually), plus you have to pay in advance for the coming year, e.g. if you owe them £500 in tax for the year 22/23 then they will want the £500 plus £250 for the 23/24 year in advance and another £250 in July, then when you submit your next tax return for 23/24 you just pay the difference (or they refund if you have paid too much).
Hope that helps
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I also recommend registering for self assessment sooner rather than later, tax returns are simple (just keep a spreadsheet of everything as you go) and give you the opportunity to pay NI contributions (if you are under the threshold) and so keep your entitlement to certain benefits (like the state pension) up to date. (more relevant if you are younger but worth mentioning)
Am I correct in saying that you register for self assessment after trading for a year. If I register this October I will be asked for april 2022 to april 2023. My pottery was born Jan 1st 2023 and I made very little up to April 2023. It has taken off more since then.
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I registered for self assessment as soon as I started Bearlescent, I rang HMRC, got through to a lovely man who gave me loads of advice about starting up. I do my return every year but have never had to pay anything as I earn too little although i did pay voluntary NI contributions last year.
I registered as soon as I started trading. I don’t earn enough to pay tax (even with my employed job) but I still choose to pay full NI (I pay as a single woman though I’ve been married 16yrs) so I get full pension.
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Thanks so much for your email
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