I started a bit of camming last year. Haven’t done anything about registering as self employed yet because a) I haven’t done a full year yet and I believe I still have time to sort that, and b) my earnings have been too low to worry about as yet.
I’ve received a letter saying I owe £158 National insurance for the year April 21 - April 22. In that period my earnings are £750! How can I owe that much in NI? And why have I received the letter, do AW inform HMRC of our details?
Hi, registering for Self Assessment can take a little bit of time, they do things by post (gateway ID etc). Nowadays even if £1 is made is needs to be declared.
I dont have any knowledge on NI sorry but just wanted to make note that AW doesnt provide the HMRC with any information (unless they have been specifically told to, eg an investigation etc), so very unlikely in your case as you would already know if there was an on-going investigation.
Aren't you allowed to earn so much before declaring anyway?
Hi, not nowadays no, has to be as soon as you earn any value.
"Do I need to register self-employed straight away?
For example, if you started a business/ became self-employed in July 2021, you'd need to register your business by 5 October 2022 at the very latest. You should not wait until the last minute before you begin the registration process just in case something goes wrong."
It use to be you could earn up to the point of personal allowance, £12570 at current, but now its everyone must register.