Self employment penalty

Wrenchie Registered Posts: 33 Regular contributor ⭐
Hoping someone can help me out again!!

I have just been to see a new client. He has been trading since June 2008, but hasn't registered with the Revenue yet. I explained that failure to do this can result in a fine. Does the revenue actually fine for this? And what is the next course of action?! The business is a partnership and his partner is in another partnership which I do the accounts for. Is he ok as he is already registered with the Revenue, or should he too have registered as a new partnership?! :confused1:


  • Psyche
    Psyche Registered Posts: 187 Dedicated contributor 🦉
    You have to register within 3 months of starting to trade. It is a new partnership, so it is a new entity; the entity is not registered. I imagine there are penalties for this but you should check the HMRC website.

    If the other partner is already in a partnership they have no excuse for not knowing this!

    Good luck!
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    As you are not past the 2008/09 filing deadline the 3 month penalty (£100) will usually be waived providing all Tax Returns are submitted on time.

    However, if they have not been paying Class 2 NI (and they are not small earnings excepted) then each partner will be given a £100 penalty for late notification of chargeability to NI. Plus back dated Class 2 contributions.
  • Wrenchie
    Wrenchie Registered Posts: 33 Regular contributor ⭐
    Thanks guys
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