When to register as sole trader?

[Freelancetrainer]

Hi, just wondering when everyone else registered wit HMRC as a sole trader? I believe I don’t need to register until I’ve earned above a thousand pounds in the year. I’ve also read that is need to register by the October after starting up. I’m assuming that if the business doesn’t hit a thousand pounds by the October that I’d not need to register? (I really hope I’ll have earned way above that of course but just trying to get more accurate detail on that). Any idea?

 

[salonfrog]

Hi
You actually don’t need to register until 5 October in your business’s second tax year.
So if you started trading in June 2018, your tax year ends on 5 April 2019. If you’ve made more than £1,000 in this period, you have until 5 October 2019 to register; and then until 31 January 2020 to submit a tax return for that first year and pay any tax due.
Hope that helps.

 

[Freelancetrainer]

That’s great. Thank you.