Seld-Employed individual Working ON and OFF

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MoneySavingBank
MoneySavingBank Registered Posts: 143 Dedicated contributor 🦉
in General accounting discussion
Hi,

Mini Cab Driver (self employed) was working full time last year.

Now he wants to become a black cab driver and very focused on his study. So he is actually working part time.

Plan for this year:
He might be working part time or Not working at all. It is just like On and Off service. If he stops working, does he need to inform HMRC? or is it ok to work on and off without notifying HMRC?

Can somebody please explain me about the legal side of this? and if he needs to inform HMRC, what is the time limit for that?

Kind Regards,

MSB

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
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    Don't really understand the question. He can be self-employed and only work 2 weeks a year if he wants. He would still be registered as self-employed because he could work 50 weeks a year. Not sure of your question?
  • MoneySavingBank
    MoneySavingBank Registered Posts: 143 Dedicated contributor 🦉
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    Do we need to inform HMRC if a slef employed stops working?

    Thanks T.C for replying my post.

    My concern is Do we need to inform HMRC when a self employed person stops his business (for him cabbing)? If we need to inform HMRC what is the time limit for that?

    Regards,
    MSB
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    If he does some self employed work in the tax year, he is self employed. No need to inform HMRC.
  • MoneySavingBank
    MoneySavingBank Registered Posts: 143 Dedicated contributor 🦉
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    That's it.

    Fantastic!

    Thank you Monsoon.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    I should add for clarity no need to tell HMRC if they already know he's self employed. Obviously if they don't he would need to register but it sounds like he already is.
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    And for future reference, there is a box on the self employment pages to inform HMRC of the date a trade finally ceases, you notify them on the tax return.
  • MoneySavingBank
    MoneySavingBank Registered Posts: 143 Dedicated contributor 🦉
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    Hi Monsoon,

    Thanks for your time and effort.

    I think I don't need to do anything since he is already self-employed and he will be working few weeks and he might take few months off.

    I really appreciate your help.

    Regards,

    MSB
  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
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    For tax purposes there shouldn't be any complications as has been discussed, but there may be NI implications if the client doesn't want to pay class 2 contributions for months when he's not working; he may wish to apply for exemption from class 2 altogether if his annual earnings will be below the threshold.

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