New time limit for registering as self employed

Monsoon

I know the rules changed recently. It used to be a £100 penalty for failing to notify self employment within 3 months. I know the 3 month thing has been abolished.

I had a look on the HMRC online site and cant find the definitive new rules. It just says "you should register immediately or you may be liable for a penalty" but elsewhere says you have til the 5th of April following the end of the relevant tax year (standard rule for requestig the need to be in self assessment). It doesn't say the criteria for being penalised.

So what is the new rule? Where is it definitively? Do they actually give you more time now?

Monsoon

I'm answering my own question! I actually found it.

Www.HMRC.gov.UK/About/new-penalties/Failure-to-notify.pdf

Yes, it's more generous. It's part of the new penalty regime and you're only penalised if HMRC suffer a loss of tax.

What an intelligent change! Makes much more sense

Monsoon

Ok, so what about late payment of class 2 NI for a 'late' registration of self employment? I can't find a reference to the due dates for payments of Class 2 NI under the old scheme (the new due dates are in line with the SA payments on account).

So, what I'm driving at is (and I'm not talking to myself this time!!), can someone register as self employed from 06/04/2010 now and not get a penalty? Or will the penalty be geared on late payment of class 2 NI? And what were the due dates for class 2 NI for 2010-11? So, when is the latest they could register?

T.C.

In the past, I have had clients register for self-employment several months later, ie just before their Tax Return is due, with no problems. I don't think HMRC are bothered so long as they get their tax on time.

deanshepherd

I have had many a client stung with a £100 penalty for late enrolment for Class 2 NIC and others who have got away scott free.

Luck of the draw I think!