The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>United Kingdom Taxes

Registering as Self-Employed but how long have i got?


My first physical trade will be on Monday, 3rd December. It is on that date that i shall be informing the HMRC that i have gone self-employed.
I left my previous job in mid July and want to know whether i can back claim my 拢5/month rates for using the house as an office and a portion of the gas/electricity for rent & rates. However, the question is whether i can back claim these to mid July or can i only start claiming them from the date that i have gone Self Employed. I could state that i went self employed 鈥榓lmost鈥?3 months ago (& not incur the late penalties) & if i did that would i then be able to back claim for those 3 months. I suppose, in a nutshell, the question is: Although i wont be trading until 3rd December i have been setting up the company and establishing business contacts since mid July, would i therefore be able to back claim rent & rates during this period of 鈥榗ompany formation鈥?or would it have to be from the date that i have gone 鈥楽elf Employed鈥?on paper with the HMRC?

"One Step Down From God" is 100% correct in his answer.
Good luck with your new business venture.

You had 3 months from the date you went self employed - regardless of the fact that you have just made your 1st trade. Reading what you have written you went self employed in mid July, so you had to tell them no later than mid October.

Whether you have commenced trading or not is a question of fact.
Preliminary activities in setting up a business do NOT count as trading.
You commenced trading on 3rd December. Any expenditure in the months before then is allowable as a deduction, subject to certain restrictions. See ICTA 1988 s 401. (Pre-Trading Expenditure).
You have 3 months from the end of the month of commencement to notify HMRC that you are in business and liable to Class2 NICs.

Tags
  Atlanta   Other - Business & Finance   Other Taxes   United States Taxes   United Kingdom Taxes   Spain Taxes   Singapore Taxes   Mexico Taxes   Ireland Taxes   India Taxes   Germany Taxes
Related information
  • My partner is a sole trader, if he makes the company a limited company, what are the advantages/disadvantages?

    It depends on the business - what does he do? There are many ways to form a business, much of which comes down to being the most tax / organisationally efficent. Broadly speaking, there are more...

  • (UK) What is the average annual salary increase (roughly) for an employee in the UK?

    There is no official annual increase, and it varies dramatically accross sectors. As you point out teachers (to start with) get reasonable incremental pay rises, as do police... whereas some get no...

  • Should the government refuse tax /vat deduction on company cars say over 2ltr diesel and 1.6ltr petrol?

    It's called freedom. I run a car capable of speeds in excess of the national speed limit, as do most people. The additional power allows me to overtake in safety. I pay higher taxes and insu...

  • Do nannies pay income taxes and get pay slips?

    They should, but do they? Depends on who is paying them. I am sure many "casual" jobs are paid in cash with no tax records. Usually a good deal for both, as long as the IRS doesn'...

  • What can i do about bank charges that i have not paid ?

    You will evidently have to pay them or you will not get another account at any bank.

    ...
  • When should i charge sales tax if i sell something on eBay?

    You should only charge tax if you have a tax license and only if the sale is within the state for which you have the license.

    ...
  • Where will i pay more tax?

    It doesnt matter whether you are employed or self employed, it's your total annual income which is counted for tax purposes. Your total income from all sources is 拢36,000, so your annual tax b...

  • Employed or self-employed? where do i pay more tax?

    You can usually claim more expenses being self-employed, but certain criteria have to be met, which decides your status. You cannot chose. I think Fengirl answered a similar question a few weeks ag...

  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster