Self assessment as Director and Self Employed Self assessment as Director and Self Employed
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  1. #1

    Nervous Newbie


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    Default Self assessment as Director and Self Employed

    Hi, I'm doing my self assessment for 2016-17 and would like some advice. I didn't make any income the entire year - took some time off to do yoga and play tennis. I am a Director of a Ltd that I set up a few years ago and I didn't earn anything from the Ltd. I would like to declare some income, say £6k from self employment which will be below the class 2 NI threshold. The 'Tailor your return' section of the self assessment form at https://tax.service.gov.uk doesn't allow me to do this. Throws an error: "You cannot remove a section from within '3. Tailor your return' Please use the 'Delete' link from within the section you wish to remove." if I try to enter details both about the Directorship and the Self Employment.

    Is it not possible to be a Director and have some income from side self employment ? If it's possible, for what do I have to register to allow the self assessment to continue ?

  2. #2

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by Ridsharc View Post
    Hi, I'm doing my self assessment for 2016-17 and would like some advice. I didn't make any income the entire year - took some time off to do yoga and play tennis. I am a Director of a Ltd that I set up a few years ago and I didn't earn anything from the Ltd. I would like to declare some income, say £6k from self employment which will be below the class 2 NI threshold. The 'Tailor your return' section of the self assessment form at https://tax.service.gov.uk doesn't allow me to do this. Throws an error: "You cannot remove a section from within '3. Tailor your return' Please use the 'Delete' link from within the section you wish to remove." if I try to enter details both about the Directorship and the Self Employment.

    Is it not possible to be a Director and have some income from side self employment ? If it's possible, for what do I have to register to allow the self assessment to continue ?
    Your accountant should be able to help you out with this, as what you have written doesn't exactly make sense in my head.
    You are saying that you had no income for 2016-17, but you want to say that you had £6k of income.
    Are you talking about your personal income or are you talking about your company income?
    If you are talking about personal income, and you say you didn't earn anything, then why would you lie to say you earned £6k?
    To me it seems like you're not telling us the whole story.
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  3. #3

    Nervous Newbie


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    I'm not keen on hiring an accountant to declare £6k income. I mean business income - not from the Ltd. Any tax free allowance is not to be wasted.

    I'll try to register for class 2 NI and see if it lets me continue.
    Last edited by Ridsharc; 13th December 2017 at 15:00.

  4. #4

    More fingers than teeth

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    Is it not possible to be a Director and have some income from side self employment?
    It certainly is. I do tax returns for me and sister and not had any problem with declaring both company and other income before. Your problem seems to be a misunderstanding about using the return.

    PS although not got round to doing mine yet this year. May be some HMRC technical cock up. Again.
    bloggoth

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  5. #5

    Contractor Among Contractors


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    I'm not sure about declaring "say £6,000", and not wasting allowances - surely you declare what you earned.

    Anyway, yes you can have both employment and non employment income on the return. I don't think registering for class 2 will make a difference this is just navigating HMRCs website.

    As one yogi to another, this may help - its something I wrote last year, so other than being one year old, should assist:

    https://yogatax.co.uk/help/filing-se...nt-tax-return/

  6. #6

    Nervous Newbie


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    Thanks all for the responses.

    If I hit Next on this image https://imgur.com/a/881WD I get the error.

    Jessica, are you absolutely sure class 2 NI is not necessary for self employment ? This link https://www.gov.uk/log-in-file-self-...-self-employed seems to suggest it may be required.

  7. #7

    Contractor Among Contractors


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    Quote Originally Posted by Ridsharc View Post
    Thanks all for the responses.

    If I hit Next on this image https://imgur.com/a/881WD I get the error.

    Jessica, are you absolutely sure class 2 NI is not necessary for self employment ? This link https://www.gov.uk/log-in-file-self-...-self-employed seems to suggest it may be required.
    Thats really only registering for Self Assessment. Once you are in the Self Assessment net, then as far as I am aware separate registration for Class 2 isn't necessary as its all via Self Assessment.

    To put that another way I'm 99.9% certain that the absence of a Class 2 registration won't effect your completion of a Self Assessment.

  8. #8

    Contractor Among Contractors


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    Re the error, it looks like something on Section 3 mismatches the rest of the return.

    Did you change anything on section 3? Eg maybe there were two employments last year?

    Can you expand section 4? What does it show?

    If you changed anything on section 3, revert it, save, and then go to section 4 and make a deletion there.

    I'm stabbing a little at this as, like most accountants, I don't use HMRCs own portal. I use accountants software via API.

  9. #9

    Nervous Newbie


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    Thanks Jessica. While I'd like to trust your 99.9% certain proclamation, the following line from the form itself https://imgur.com/a/881WD gives me second thoughts.

    "If you are self employed or in a partnership, you must register to pay Class 2 National Insurance."

    I think I'll just leave it as 0 income from the Ltd and no self employment and no Class 2. If my circumstances change and I forget to later unregister I'll have presented hmrc with another stick with which to beat me.

  10. #10

    Contractor Among Contractors


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    Your call. But, either you have income to declare or you don't. Its not optional.

    Its an offence not to declare your income.

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