New rules for registering as self-employed
There is no longer a £100 fixed penalty for people who are more than three months late in telling HM Revenue & Customs (HMRC) that they are self-employed – but delay could still be very expensive.
Anyone who starts in business after 5 April 2009 should still tell HMRC immediately so they can start paying the right amount of national insurance contributions (NICs). However, they will only be penalised if they have not notified HMRC by 31 January following the end of the tax year in which they became self-employed. The downside is that the penalty can then be up to 100% of the unpaid NICs, depending on the circumstances, although it will usually be 30%. There will be further penalties if income tax is paid late as a result of late notification.