Where to put a bit of freelance income on my tax return?
Discussion
I do a self-assessment tax return every year as I do a bit of freelance work on the side of my full-time PAYE job.
Every year the form seems to change. This year I can't work out where to put my freelance income. I can add "Employment 2" to the form but the options this gives me don't really fit what I'm trying to achieve...
"Employer name"
This isn't an employer, just me working freelance in my spare time.
"Employer's PAYE Reference"
Again, there is no employer or PAYE reference - it's just me.
"Pay from < Employment 2 > - total from your P45 or P60. Enter the amount before tax taken off: (Optional)"
There is no P45 or P60 - it's just me!
"Were you a director of this company?"
No, it isn't a company I'm a sole trader.
This is a lot of hassle for £500 of income on the side for a while fecking year!
Every year the form seems to change. This year I can't work out where to put my freelance income. I can add "Employment 2" to the form but the options this gives me don't really fit what I'm trying to achieve...
"Employer name"
This isn't an employer, just me working freelance in my spare time.
"Employer's PAYE Reference"
Again, there is no employer or PAYE reference - it's just me.
"Pay from < Employment 2 > - total from your P45 or P60. Enter the amount before tax taken off: (Optional)"
There is no P45 or P60 - it's just me!
"Were you a director of this company?"
No, it isn't a company I'm a sole trader.
This is a lot of hassle for £500 of income on the side for a while fecking year!
Those don't really answer my questions. But, if I fill the "Check if you need to send a Self Assessment tax return" questionnaire which I found it tells me I don't need to fill in a self assessment tax return. That said, there's nowhere in it to state that you have a PAYE job too.
Edited by MitchT on Saturday 28th December 14:56
They may be applying the "sub £1,000" self employed allowance that was brought in a few years ago. If your self employed profits are under £1,000, you can opt not to fill in a return.
However, it's always worthwhile checking whether they have requested you to complete one. If they have, you need to either complete the return or let them know that you don't have any income that needs to be covered by self assessment.
You have done the right thing. All I would add is make sure you can see clearly on your HMRC tax account that there is no requirement to complete a s elf assessment return OR they actually send you a physical letter confirming no self assessment tax return is due.
They will not stand by any information given over the phone.
However, it's always worthwhile checking whether they have requested you to complete one. If they have, you need to either complete the return or let them know that you don't have any income that needs to be covered by self assessment.
You have done the right thing. All I would add is make sure you can see clearly on your HMRC tax account that there is no requirement to complete a s elf assessment return OR they actually send you a physical letter confirming no self assessment tax return is due.
They will not stand by any information given over the phone.
Eric Mc said:
They may be applying the "sub £1,000" self employed allowance that was brought in a few years ago. If your self employed profits are under £1,000, you can opt not to fill in a return.
Yes, it appears this applies even if your self employed income is in addition to PAYE income. I assumed it would only apply to someone who was only self employed.Eric Mc said:
All I would add is make sure you can see clearly on your HMRC tax account that there is no requirement to complete a s elf assessment return OR they actually send you a physical letter confirming no self assessment tax return is due.
He said he'd issue a letter confirming so I'll keep an eye out for that and check my online account to see if it's been marked as not needed.Gassing Station | Finance | Top of Page | What's New | My Stuff