I'm a trainee accountant but I have started a little hobby business on the side (it's tiny, we're not talking anything material here!). One because I have always wanted to do so, and two because I think it will help expand my knowledge.
Anyway, I started in February 2015 and registered as self employed a few weeks ago. HMRC billed me for Class 2 NI from Feb to Apr 15, but my earnings from this from Feb to Apr 15 was a small loss, and likely never will be above the £5k limit in the coming years.
I know it's changing in 15/16 whereby you pay Class 2 NI through the tax return, however I want to remove this Class 2 NI liability from Feb to Apr 15 as I simply don't have to pay it because of the loss.
I just wanted to check - I intend to submit the CF10 form with a covering letter saying I made a loss in the time I traded during 14/15 therefore request they cancel the liability.
Does this seem sensible to you? I am only a trainee so just want to check before I send it off. I read you should do this before the year starts, but obviously back in 13/14 I didn't know what I was going to be doing next month let alone next year!!
Thanks
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there are posts on this subject..but...
you should have completed an small earnings exemption form at the outset.
PS what is a 'hobby' business?