Self employment penalty

Wrenchie

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

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

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

Thanks guys