Self-employed, want to pay the national insurance contributions. Will a simple notebook suffice?
I've been self-employed since May 2004. I haven't registered with HM Revenue and Customs yet, but I'll do that next week ( I know they can fine me £100 for late registration). Now, since my earnings are so meager (I do Midget, casual translation jobs), my earnings do not exceed £3000 every year (and I have no other income at all - I get supported by my parents). I understand, that I am not liable to pay any tax BUT I'll have to pay the national insurance contributions. Can someone advice what would they be and how much should I expect to pay for the past 3 years? I really can't hire an accountant to do this job for me, because I don't have much money. I understand that I'll have to fill in a self-assessment form (IS IT ALLOWED TO BACKDATE IT 3 YEARS???), and when it comes to evidence of my income (I only accepted cach), I only kept a Midget notebook where I wrote down all income (but I didn't bother to keep track of my expenditures, receipts etc.). Is a handwritten notebook acceptable? By a 'handwritten notebook' I mean, a notebook where I've kept all the records of the cash income I've ever received (from May 2004), for instance: May 21, 2004 (Friday): a translation (Italian-English, 2 pages) to Mrs X.Y. Payment by cash received: £40 Will such notebook be accepted by the taxman when they ask for the evidence of the income for the past 3 years? Also, how do I obtain the Midget Earnings Exemption Certificate and how will it aid me? I understand that I can only get this certificate for the last tax year (isn't it?), and not for the previous 3 years. Thanks G! I'm quite surprised though that I won't be able to pay any taxes or national insurance contributions for the years 04/05; 05/06. What do I do about that, because I need evidence that I've been self-employed in this country for the past 3 years. So if I'm not allowed to pay taxes or NI contributions for the previous 2 years, then what's the solution? I don't want to have gaps in my tax record later on in life, and I desperately need to fill it in. Do you think paying the voluntary National Insurance (Category 3) contributions would come in handy in this situation?
Public Comments
- 1) At that level of income, you will not have to pay any Tax or NI. 2) If you raise above the threshold, you pay £2.10 per week for Self employed tax 3) You cannot backdate your 3 years If you register next week, your time from 26 February 07 (or you can go up to 3 months prior) till 5 April 07 will be your tax year. You will get a Self Assesment form which you need to sign and send back to the HMRC by 31 September, and HMRC will calculate the tax for you. If you don't, you will have until End of January to calculate the tax yourself (You'll need an accountant). If you miss that, you will have to pay interest, fines and other nasties. A notebook will suffice.
