sole trader registration

zuluBaz

Hi folks…. im new to the site and really looking for some help/information.... for the past few years ..by accident, i fell into what i would call as self employed...its art based so no set income , and varies from week to week ...i would say to best describe it i earn a wage ... in this time i have never claimed any benefits....but nor have i paid any tax etc...i know i know, wrong....but it just kinda trundled along that way working from home... looking at what you are allowed earn as a sole trader before paying tax i would be at the lower end anyway...what i really want to know is , i want to go legit so to speak and set up properly as sole trader...however im terrified that once i set the wheels in motion i will bring the HMRC down on top of me…. do they require you provide information to previous employment/earnings in the process of registering as a sole trader …or is there any way i can get set properly going forward …any help is hugely apreciated
regards
B.

AlexandraMoore

We’d recommend that you speak to HMRC directly as, depending on your earnings, they may or may not require you to backdate your registration to cover previous years.
Once you’ve done this, details of how to register are on the HMRC website https://www.gov.uk/register-for-self-assessment
You’ll need to set up a business tax account and fill in a form online. This includes details such as your turnover but you won’t be asked to provide any proofs of previous employment.
Once registered you’ll need to file a Self Assessment tax return for each tax year. You can request this service in your Crunch Free account when the time comes.

zuluBaz

thanks very much for the reply…appreciated…..just on the when you began tradingpoint…..if i take it that now is my starting point…will they not want to know how or where i was earning an income before seeting up as a sole trader?

AlexandraMoore

The form to register as a Sole Trader doesn’t ask you to provide details of your employment history. However, we’d advise providing HMRC with accurate information regarding your trading start date. This should be the point you began working as self employed.
Unfortunately, we’re not able to comment as to what HMRC may ask for if they decided to do a tax investigation at any point in the future.

Helen19

Thanks for clearing that up.

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