[Deleted]

kochellii

[deleted]

(edited 2 months ago)

Reply 1

DataVenia

Volunteer Team, Clearing and Applications Advisor

Original post by kochellii

Made income during gap year as self-employed online writer in 2021, but didn’t declare income or knew that I would earn around £7000 during Jan-Dec 2021. I didn’t know you had to declare income over £1000+ either. Earned in 2022, 2023 and 2024 but all under £ 1000. Now it’s 2024 and am finally realising. Am being tested for ADHD and struggling with anxiety and depression since 2018. What do I do now? I am panicked and thrown up twice. Advice and support are appreciated.

You simply tell HMRC about those undeclared earnings. The current personal allowance (the amount you can earn before paying tax) is £12,570. And it's been there or thereabouts for several years. So it's sounds like you're well under that limit. However, there may be penalties for not having declared your income, even though no tax was due.

The easiest way to inform HMRC is probably via their Tell HMRC about underpaid tax from previous years web page. The page contains links to calculators to help you work out your tax, interest, and penalties (if any).

Alternatively, you can register for Self Assessment, via which you can declare any income you have not paid tax on from the last 4 years. The relevant web page for that route is at If you have not told HMRC about income.

To declare any underpaid tax, or to register for Self Assessment, you'll need a Government Gateway User ID, which is a pain to set-up, unfortunately.

If you'd prefer to talk to someone at HMRC about this (rather than just complete some forms) then call 0300 200 3300. Be ready to provide your National Insurance number, I'd you have one.

And, most importantly, relax. This isn't the disaster which you seem to think that it is :smile:

Reply 2

DataVenia

Volunteer Team, Clearing and Applications Advisor

Also, I've moved your thread to somewhere more appropriate. I hope that's OK @kochellii.

Reply 3

threeportdrift

Careers Forum Helper

Original post by kochellii

Hi, thank you for moving the thread. I hope it reaches more people.

You don't need it to reach more people. What DataVenia says above is correct. You are well below the tax threshold, there won't be any issue. Many people would't bother to declare because no tax is due. It's not a big deal, no-one is going to hunt you down, there are no secret ways for the government to find out etc etc. You can ring them up and just ask if you need to declare it, but seriously, it's not an issue if you are under the threshold, which as above, is about£12k.

Reply 4

threeportdrift

Careers Forum Helper

Original post by kochellii

My issue is that I surpassed the £1000 Trading Allowance, which apparently means I’m operating a business and must register for self-assessment and submit a tax return? Please help me understand this. I know that in the Tax Year April 6 2021 - April 5 2022, I made £4,479.00. This is above the trading allowance, but I did not declare it as income. I guess it isn’t above £6725 so I don’t have to pay National Insurance? Again, I am really misunderstood and I’m trying to understand the *MOST* that I can before I reach out to HRMC ☹️ I am still unsure of whether this qualifies as me being self-employed as a “sole trader.” It’s like a YouTuber’s income, except you write articles and get paid per Read.

It doesn't matter, that's an allowance. If you want to make a mountain out of a molehill go ahead and fill in a tax return, you will still end up with no tax to pay, but it will be incredibly stressful, HMRC will never let you go again, and there is zero upside for you.

The trading Allowance is exactly what is says, an allowance, then net effect, as far as I can tell, and I am NOT a tax or financial advisor, is that it would increase your basic allowance from £12 whatever k, to £13 whatever k. This is still irrelevant if you had less than that level of income in the tax year.